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Pepco Group (PCO) Fair Value & Analysis

Consumer Defensive · PL · Market cap 22.4B PLN

PG Pepco Group PCO · WAR
Price46.67 PLN
Fair Value54.90 PLN
Upside+17.6%
Quality67/100
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Mixed Growth
Thin margins · 4.0% net margin
Moderate debt · generates free cash flow
0.24% dividend yield
Mixed vs. peers (7/14)
Moderate moat 57/100
Evidence: High Range 41.10 PLN – 68.70 PLN Share as image

Fair value as of: Jul 17, 2026

From 16 valuation models · updated 23 days ago

Fair value updated Jul 17, 2026, revised from 12.40 PLN to 54.90 PLN (+342.7%) since Jun 24, 2026. Share price +27.9% over the past month.

A solid business, screening 18% undervalued on our models.

What matters now

  • Our model range runs from 41.10 PLN (bear) to 68.70 PLN (bull), base 54.90 PLN. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 67/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

54.55 PLN 13.82 PLN Fair Value 54.90 PLN May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range 13.82 PLN – 54.55 PLN · fair‑value band 41.10 PLN – 68.70 PLN · the 46.67 PLN price screens below the 54.90 PLN fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Pepco Group (PCO) currently trades at 46.67 PLN, while our model-based Fair Value estimate is 54.90 PLN, implying the stock looks roughly 17.6% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Pepco Group generated revenue of 4.6B PLN at a net margin of 4.0%. Revenue grew 5.0% year over year. It earns a return on equity of 85.1%. Net debt stands at 162M PLN. Fundamentals as of Jul 17, 2026

Our scenario range runs from 41.10 PLN (bear case) to 68.70 PLN (bull case); at 46.67 PLN, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic. The share trades near its 52-week high and 169% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -15% fair-value upside, at 18%, PCO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF 16.31 PLN 27.30 PLN 45.44 PLN 80
Rev-Margin DCF 9.91 PLN 15.10 PLN 21.65 PLN 74
ROIC Compounder 5.81 PLN 6.70 PLN 7.48 PLN 72
All 16 models by family
DCF Models
FCF DCF 16.32 PLN 27.99 PLN 47.58 PLN 38
Owner Earnings 4.67 PLN 7.76 PLN 12.93 PLN 31
5Y Revenue Exit 9.91 PLN 15.03 PLN 21.64 PLN 39
5Y EBITDA Exit 14.18 PLN 23.62 PLN 35.14 PLN 41
10Y Revenue Exit 11.76 PLN 17.26 PLN 24.98 PLN 36
10Y EBITDA Exit 14.78 PLN 23.46 PLN 36.01 PLN 37
Earnings-Based
EPV 5.81 PLN 6.70 PLN 7.48 PLN 59
Dividend Discount
Gordon GGM 0.6000 PLN 1.25 PLN 1.98 PLN 70
DDM Multi-Stage 0.6000 PLN 1.05 PLN 1.31 PLN 61
Multiples
EV/EBIT 10.02 PLN 13.19 PLN 16.37 PLN 53
EV/EBITDA 14.34 PLN 18.96 PLN 23.58 PLN 54
EV/Revenue 6.91 PLN 9.67 PLN 12.42 PLN 43
Asset-Based
NCAV (Graham) 0.1500 PLN 0.2000 PLN 0.3000 PLN 50
Growth DCF
Growth DCF 16.31 PLN 27.30 PLN 45.44 PLN 80
Rev-Margin DCF 9.91 PLN 15.10 PLN 21.65 PLN 74
Economic Profit
ROIC Compounder 5.81 PLN 6.70 PLN 7.48 PLN 72

Widest divergence: DCF Models (17.26 PLN) versus Asset-Based (0.2000 PLN). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 4.6B PLN
Revenue growth (YoY) +5.0%
Net margin 4.0%
Return on equity 85.1%
Free cash flow 694M PLN FY2025
P/E ratio 20.7
More key figures
Operating margin 12.3%
EPS (TTM) 1.64 PLN
Dividend yield 0.3%
EPS growth (YoY) -33.3%
Net debt 162M PLN FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 62 · Market factors (momentum, volatility) 87

Profitability 40
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 35
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 94
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Pepco Group N.V. operates as a variety discount retailer in the United Kingdom, the Republic of Ireland, Poland, and the rest of Europe. The company offers general merchandise; apparel for the whole family, including children's wear; household goods and toys; homeware; home décor; and seasonal products.

Full company description

Pepco Group N.V. operates as a variety discount retailer in the United Kingdom, the Republic of Ireland, Poland, and the rest of Europe. The company offers general merchandise; apparel for the whole family, including children's wear; household goods and toys; homeware; home décor; and seasonal products. In addition, the company provides direct product sourcing, product development, and technical services. Pepco Group N.V. operates stores under the Pepco, Poundland, and Dealz brands. The company was founded in 1990 and is based in London, the United Kingdom. Pepco Group N.V. is a subsidiary of Pepco Holdco Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pepco Group reported revenue of 4.5B PLN in FY2025 versus 4.1B PLN in FY2021, a compound +2.4%/yr. Reported net income was −176M PLN in FY2025.

Growth Quality 59/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
4.5B PLN
Latest YoY
−26.6%
Avg. growth/yr (3Y)
−2.1%
Avg. growth/yr (5Y)
+5.2%
Avg. growth/yr (9Y)
+24.1%
Revenue +2.4%/yr
FY21 4.1B PLN
FY22 4.8B PLN
FY23 5.6B PLN
FY24 6.2B PLN
FY25 4.5B PLN
Net income
FY21 131M PLN
FY22 174M PLN
FY23 102M PLN
FY24 −710M PLN
FY25 −176M PLN

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Cite: Fair Value Calculator (2026). "Pepco Group Fair Value". https://www.fairvalue-calculator.com/stock/PCO

Peer Group

Discount Stores · 25 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +18% · Top 25%
Return on equity (TTM) 85% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 12% · Top 25%
Revenue growth 5% · Below median
Dividend yield (TTM) 0.2% · Below median
Debt / equity 1.20× · Higher than 75% of peers

Valuation Multiples vs Discount Stores median · lower = cheaper

P/E (TTM) 24.7× · Pricier than median
P/B 36.97× · Pricier than 75% of peers
P/S (TTM) 1.30× · Pricier than median
P/FCF 8.7× · Pricier than median
EV/EBITDA 9.0× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 57 · sector 11
FUTURE 25 · sector 37
PAST 100 · sector 76
HEALTH 40 · sector 89
DIVIDEND 5 · sector 21

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Discount Stores stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Walmart Inc WMT $113.90 $48.65 -57%
Costco Wholesale Corporation COST $916.25 $383.51 -58%
Target Corporation TGT $139.60 $118.22 -15%
Wal-Mart de México, S.A. WALMEX 49.49 MXN 60.59 MXN +22%
Dollarama Inc DOL C$188.95 C$92.38 -51%
Avenue Supermarts Limited DMART ₹4,081 ₹1,066 -74%
Dollar General Corporation DG $125.75 $116.55 -7%
Dollar Tree, Inc DLTR $124.91 $125.92 +1%
BJ's Wholesale Club Holdings BJ $90.24 $80.99 -10%
PriceSmart, Inc PSMT $189.05 $98.60 -48%

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Frequently asked questions

Is Pepco Group (PCO) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of 54.90 PLN versus a price of 46.67 PLN, about +18% (undervalued).
What is the fair value of PCO?
Our model-based fair value for Pepco Group is 54.90 PLN (as of Jul 17, 2026), built from audited fundamentals. The current price is 46.67 PLN.
What is the quality score of PCO?
Pepco Group has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Pepco Group (PCO)?
Pepco Group reported trailing-twelve-month revenue of about 4.6B PLN (latest available figure, as of Jul 17, 2026).
What is the net profit margin of PCO?
The net profit margin of Pepco Group is about 4.0%, meaning it keeps roughly 4.0% of revenue as net income. Based on the latest reported figures.
Does Pepco Group pay a dividend?
Pepco Group currently shows a dividend yield of about 0.28% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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