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Pets at Home Group (PETS) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 837M GBX

PA Pets at Home Group PETS · LSE
Price£1.92
Fair Value£3.07
Upside+60.0%
Quality67/100
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Mixed Growth
Thin margins · 4.3% net margin
Low debt · generates free cash flow
3.93% dividend yield
Ranks above peers (9/15)
Narrow moat 41/100
Evidence: High Range £2.09 – £4.05 Share as image

Fair value as of: Jul 14, 2026

From 26 valuation models · updated 27 days ago

Fair value updated Jul 14, 2026, revised from £3.14 to £3.07 (−2.4%) since Jun 24, 2026. Share price +10.1% over the past month.

A solid business, screening 60% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£2.09). The market is more pessimistic than our downside scenario.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (£2.09 to £4.05) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£3.89 £1.57 Fair Value £3.07 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range £1.57 – £3.89 · fair‑value band £2.09 – £4.05 · the £1.92 price screens below the £3.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

Pets at Home Group (PETS) currently trades at £1.92, while our model-based Fair Value estimate is £3.07, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Consumer Cyclical 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, Pets at Home Group generated revenue of £1.5B at a net margin of 4.3%. Revenue declined 0.2% year over year. It earns a return on equity of 6.4%. Net debt stands at £357M. Fundamentals as of Jul 14, 2026

Our scenario range runs from £2.09 (bear case) to £4.05 (bull case); at £1.92, the current price sits below 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. For context, the median of 10 Consumer Cyclical peers we cover trades at -24% fair-value upside, at 60%, PETS 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £3.11 £4.30 £5.77 80
Residual Income £1.68 £1.74 £1.71 76
Rev-Margin DCF £2.30 £3.41 £4.69 74
All 26 models by family
DCF Models
FCF DCF £3.08 £4.45 £6.26 38
Owner Earnings £2.58 £3.72 £5.23 31
5Y Revenue Exit £2.30 £3.37 £4.70 39
5Y EBITDA Exit £3.33 £5.28 £7.54 41
5Y P/E Exit £2.47 £3.69 £4.94 38
10Y Revenue Exit £2.54 £3.54 £4.81 36
10Y EBITDA Exit £3.19 £4.75 £6.78 37
10Y P/E Exit £2.69 £3.74 £4.98 35
Earnings-Based
Graham-Dodd £0.9700 £2.97 £3.95 54
Lynch FV £0.6400 £0.9100 £1.19 50
PEG = 1.0 £0.6400 £0.9100 £1.19 46
EPV £1.22 £1.39 £1.53 59
Dividend Discount
Gordon GGM £1.03 £1.86 £2.57 70
DDM Multi-Stage £1.03 £1.60 £1.99 61
Multiples
P/E Multiple £2.36 £3.15 £3.94 63
P/S Multiple £1.82 £2.43 £3.04 58
P/B Multiple £1.82 £2.43 £3.04 55
EV/EBIT £2.80 £3.74 £4.68 53
EV/EBITDA £3.95 £5.28 £6.61 54
EV/Revenue £1.88 £2.69 £3.51 43
Asset-Based
NCAV (Graham) £1.10 £1.48 £2.21 50
Growth DCF
Growth DCF £3.11 £4.30 £5.77 80
Rev-Margin DCF £2.30 £3.41 £4.69 74
Economic Profit
Residual Income £1.68 £1.74 £1.71 76
ROIC Compounder £1.22 £1.39 £1.53 72
Growth Earnings
Growth-Adj P/E £1.93 £2.76 £3.59 68

Widest divergence: DCF Models (£3.72) versus Earnings-Based (£0.9100). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.5B GBX
Revenue growth (YoY) -0.2%
Net margin 4.3%
Return on equity 6.4%
Free cash flow 147M GBX FY2026
P/E ratio 13.6
More key figures
Operating margin 9.3%
EPS (TTM) £0.1400
Dividend yield 3.9%
EPS growth (YoY) -27.6%
Net debt 357M GBX FY2026

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 66 · Market factors (momentum, volatility) 47

Profitability 47
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 68
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 100
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

Pets at Home Group Plc engages in the omnichannel retailing of pet food, pet related products, and pet accessories in the United Kingdom. The company operates through three segments: Retail, Vet Group, and Central.

Full company description

Pets at Home Group Plc engages in the omnichannel retailing of pet food, pet related products, and pet accessories in the United Kingdom. The company operates through three segments: Retail, Vet Group, and Central. It offers pet grooming services, including various dog groom, bath, microchipping, and nail clipping; pet insurance products; in-store services; and general veterinary care, triage, and veterinary telehealth services. The company operates through pet care centers, veterinary practices, and grooming salons. It also provides products and services through online under the Pet at Home, Vets for Pets, Pet Grooming, Pets Foundation, and Pets VIP Club brands. Pets at Home Group Plc was founded in 1991 and is based in Handforth, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Pets at Home Group reported revenue of £1.5B in FY2026 versus £1.3B in FY2022, a compound +2.8%/yr. Reported net income was £63.1M in FY2026, compounding −15.6%/yr from FY2022.

Growth Quality 63/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
£1.5B
Latest YoY
−0.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.2%
Avg. growth/yr (15Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.2%
Revenue +2.8%/yr
FY22 £1.3B
FY23 £1.4B
FY24 £1.5B
FY25 £1.5B
FY26 £1.5B
Net income −15.6%/yr
FY22 £125M
FY23 £101M
FY24 £79.2M
FY25 £88.2M
FY26 £63.1M
Character of growth · EPS growth decomposed (2015-2026) +1.2 % p.a.
Revenue per share +8.0 pp

of which total revenue +7.3 pp · buybacks/dilution +0.8 pp

EBIT margin −5.1 pp
Tax rate −0.9 pp
Residual (interest, one-offs) −0.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Pets at Home Group Fair Value". https://www.fairvalue-calculator.com/stock/PETS

Peer Group

Specialty Retail · 221 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 +60% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 4% · Above median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 9% · Top 25%
Revenue growth -0% · Below median
Dividend yield (TTM) 3.9% · Above median
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 13.6× · Cheaper than median
P/B 1.16× · Cheaper than median
P/S (TTM) 0.77× · Pricier than median
P/FCF 7.7× · Pricier than median
EV/EBITDA 8.1× · Pricier than median
PEG 2.63× · Pricier than 75% of peers

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 100 · sector 29
FUTURE 0 · sector 23
PAST 26 · sector 27
HEALTH 97 · sector 94
DIVIDEND 79 · sector 51

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 Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
Casey's General Stores, Inc CASY $827.04 $405.44 -51%
Williams-Sonoma, Inc WSM $222.84 $164.16 -26%
Ulta Beauty, Inc ULTA $479.57 $488.39 +2%
DICK'S Sporting Goods, Inc DKS $208.89 $181.10 -13%
Best Buy Co BBY $83.98 $109.12 +30%
China Tourism Group 601888 ¥52.90 ¥40.40 -24%
Tractor Supply Company TSCO $31.01 $35.52 +15%
Murphy USA Inc MUSA $618.57 $423.35 -32%
Five Below, Inc FIVE $197.71 $117.29 -41%
Taiwan Mobile Co 3045 110.50 TWD 80.98 TWD -27%

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Frequently asked questions

Is Pets at Home Group (PETS) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of £3.07 versus a price of £1.92, about +60% (undervalued).
What is the fair value of PETS?
Our model-based fair value for Pets at Home Group is £3.07 (as of Jul 14, 2026), built from audited fundamentals. The current price is £1.92.
What is the quality score of PETS?
Pets at Home 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 Pets at Home Group (PETS)?
Pets at Home Group reported trailing-twelve-month revenue of about £1.5B (latest available figure, as of Jul 14, 2026).
What is the net profit margin of PETS?
The net profit margin of Pets at Home Group is about 4.3%, meaning it keeps roughly 4.3% of revenue as net income. Based on the latest reported figures.
Does Pets at Home Group pay a dividend?
Pets at Home Group currently shows a dividend yield of about 3.83% relative to its recent price (as of Jul 14, 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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