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J Sainsbury plc (SBRY) Fair Value & Analysis

Consumer Defensive · GB · Market cap 7.7B GBX

JS J Sainsbury plc SBRY · LSE
Price£3.54
Fair Value£3.68
Upside+4.1%
Quality64/100
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Mixed Growth
Thin margins · 1.2% net margin
Low debt · generates free cash flow
3.93% dividend yield
Trails peers (5/15)
Narrow moat 34/100
Evidence: High Range £2.52 – £4.61 Share as image

Fair value as of: Jul 17, 2026

From 25 valuation models · updated 21 days ago

Fair value updated Jul 17, 2026, revised from £3.64 to £3.68 (+1.1%) since Jun 24, 2026. Share price +5.1% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (£2.52 to £4.61) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£3.59 £1.35 Fair Value £3.68 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 £1.35 – £3.59 · fair‑value band £2.52 – £4.61 · the £3.54 price screens below the £3.68 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

J Sainsbury plc (SBRY) currently trades at £3.54, while our model-based Fair Value estimate is £3.68, implying the stock looks roughly 4.1% fairly valued today. We read business quality at 64/100 (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, J Sainsbury plc generated revenue of £33.6B at a net margin of 1.2%. Revenue grew 2.9% year over year. It earns a return on equity of 6.5%. Net debt stands at £5.9B. Fundamentals as of Jul 17, 2026

Our scenario range runs from £2.52 (bear case) to £4.61 (bull case); at £3.54, 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. For context, the median of 10 Consumer Defensive peers we cover trades at -31% fair-value upside, at 4%, SBRY 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 £5.52 £7.62 £10.38 80
Residual Income £2.22 £2.31 £2.35 76
Rev-Margin DCF £4.12 £6.07 £8.18 74
All 25 models by family
DCF Models
FCF DCF £5.38 £7.66 £10.79 38
Owner Earnings £4.56 £6.51 £9.17 31
5Y Revenue Exit £4.12 £5.99 £8.26 39
5Y EBITDA Exit £7.13 £11.34 £16.06 41
5Y P/E Exit £3.39 £4.68 £5.95 38
10Y Revenue Exit £4.46 £6.19 £8.29 36
10Y EBITDA Exit £6.40 £9.73 £13.84 37
10Y P/E Exit £4.11 £5.33 £6.64 35
Earnings-Based
Graham-Dodd £1.19 £2.81 £3.62 54
PEG = 1.0 £0.4800 £0.6900 £0.9000 46
EPV £2.74 £3.20 £3.58 59
Dividend Discount
Gordon GGM £2.27 £3.81 £5.57 70
DDM Multi-Stage £2.27 £3.31 £4.41 61
Multiples
P/E Multiple £2.63 £3.51 £4.39 63
P/S Multiple £2.24 £2.98 £3.73 58
P/B Multiple £2.24 £2.98 £3.73 55
EV/EBIT £5.39 £7.23 £9.07 53
EV/EBITDA £9.38 £12.54 £15.71 54
EV/Revenue £3.60 £5.19 £6.78 43
Asset-Based
NCAV (Graham) £1.40 £1.88 £2.81 50
Growth DCF
Growth DCF £5.52 £7.62 £10.38 80
Rev-Margin DCF £4.12 £6.07 £8.18 74
Economic Profit
Residual Income £2.22 £2.31 £2.35 76
ROIC Compounder £2.74 £3.32 £3.99 72
Growth Earnings
Growth-Adj P/E £2.00 £2.86 £3.71 68

Widest divergence: DCF Models (£6.19) versus Asset-Based (£1.88). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 33.6B GBX
Revenue growth (YoY) +2.6%
Net margin 1.2%
Return on equity 6.4%
Free cash flow 1.2B GBX FY2026
P/E ratio 19.6
More key figures
Operating margin 3.5%
EPS (TTM) £0.1800
Dividend yield 3.9%
EPS growth (YoY) +29.9%
Net debt 5.9B GBX FY2026

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

Quality Score breakdown

Overall quality 64/100

Of which business quality 60 · Market factors (momentum, volatility) 69

Profitability 40
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 59
Price trend over the last 3–12 months (market factor)
52W Momentum 80
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

J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom. The company operates through Retail and Financial Services segments.

Full company description

J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom. The company operates through Retail and Financial Services segments. It sells food, household, general merchandise, clothing, and fuel through convenience stores and supermarkets, as well as online channels. The company also provides banking and insurance services. It offers its products under the Sainsbury's, Argos, Habitat, Tu, Smart Charge, Nectar, Nectar360, and Sainsbury's Bank brand names. The company was founded in 1869 and is headquartered in London, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

J Sainsbury plc reported revenue of £33.6B in FY2026 versus £29.9B in FY2022, a compound +3.0%/yr. Reported net income was £384M in FY2026, compounding −13.2%/yr from FY2022.

Growth Quality 51/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
£33.6B
Latest YoY
+2.5%
Avg. growth/yr (3Y)
+2.2%
Avg. growth/yr (5Y)
+3.0%
Avg. growth/yr (40Y)
+5.9%
Revenue +3.0%/yr
FY22 £29.9B
FY23 £31.5B
FY24 £32.7B
FY25 £32.8B
FY26 £33.6B
Net income −13.2%/yr
FY22 £677M
FY23 £207M
FY24 £137M
FY25 £242M
FY26 £384M

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Cite: Fair Value Calculator (2026). "J Sainsbury plc Fair Value". https://www.fairvalue-calculator.com/stock/SBRY

Peer Group

Grocery Stores · 82 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 64 · Top 25%
Fair Value upside +4% · Above median
Return on equity (TTM) 6% · Below median
Return on assets 3% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 3.9% · Top 25%
Debt / equity 0.16× · Lower than median

Valuation Multiples vs Grocery Stores median · lower = cheaper

P/E (TTM) 19.6× · Pricier than median
P/B 1.69× · Pricier than median
P/S (TTM) 0.31× · Cheaper than median
P/FCF 8.8× · Pricier than median
EV/EBITDA 6.9× · Pricier than median
PEG 3.65× · 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 39 · sector 34
FUTURE 13 · sector 17
PAST 26 · sector 51
HEALTH 92 · sector 92
DIVIDEND 79 · sector 47

Insider activity: 45/100

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

Stock Price Fair Value vs Fair Value
Loblaw Companies Limited L C$65.49 C$44.44 -32%
Koninklijke Ahold Delhaize N.V AD €36.30 €53.50 +47%
The Kroger Co KR $58.82 $28.19 -52%
Woolworths Group WOW A$39.20 A$13.40 -66%
George Weston Limited WN C$100.98 C$63.61 -37%
Coles Group COL A$23.56 A$15.86 -33%
Metro Inc MRU C$93.64 C$94.01 +0%
Carrefour SA CA €16.40 €11.51 -30%
CP ALL Public Company TCPD 1.89 SGD 2.38 SGD +26%
BIM Birlesik Magazalar A.S., BIMAS 385.75 TRY 267.12 TRY -31%

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Frequently asked questions

Is J Sainsbury plc (SBRY) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of £3.68 versus a price of £3.54, about +4% (fairly valued).
What is the fair value of SBRY?
Our model-based fair value for J Sainsbury plc is £3.68 (as of Jul 17, 2026), built from audited fundamentals. The current price is £3.54.
What is the quality score of SBRY?
J Sainsbury plc has a Quality Score of 64/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of J Sainsbury plc (SBRY)?
J Sainsbury plc reported trailing-twelve-month revenue of about £33.6B (latest available figure, as of Jul 17, 2026).
What is the net profit margin of SBRY?
The net profit margin of J Sainsbury plc is about 1.2%, meaning it keeps roughly 1.2% of revenue as net income. Based on the latest reported figures.
Does J Sainsbury plc pay a dividend?
J Sainsbury plc currently shows a dividend yield of about 4.62% 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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