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Templeton Emerging Markets Investment Trust plc (TEM) Fair Value & Analysis

Financial Services · GB · Market cap 3.2B GBX

TE Templeton Emerging Markets Investment Trust plc TEM · LSE
Price£3.33
Fair Value£2.78
Upside-16.5%
Quality95/100
Evidence: High Range £2.09 – £3.48

Fair value as of: Jun 26, 2026

From 22 valuation models · updated 3 days ago

Share price −1.8% over the past month.

Price vs Fair Value (12 months)

£3.58 £1.91 Fair Value £2.78 Jun 2025 Jun 2026

12‑month range £1.91 – £3.58 · fair‑value band £2.09 – £3.48 · the £3.33 price screens above the £2.78 fair value. As of Jun 26, 2026.

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Analysis

Templeton Emerging Markets Investment Trust plc (TEM) currently trades at £3.33, while our model-based Fair Value estimate is £2.78 — implying the stock looks roughly 16.5% overvalued today. We read business quality at 95/100 (high quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Templeton Emerging Markets Investment Trust plc generated revenue of £524M at a net margin of 93.5%. Revenue grew 214.6% year over year. It earns a return on equity of 22.4%. Net debt stands at £4.5M. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 524M GBX
Revenue growth (YoY) +215%
Net margin 93.5%
Return on equity 22.4%
Free cash flow 47.2M GBX FY2025
P/E ratio 20.5
More key figures
Operating margin 98.0%
EPS (TTM) £0.4900
Dividend yield 1.6%
EPS growth (YoY) +286%
Net debt 4.5M GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

Templeton Emerging Markets Investment Trust plc is a closed-ended equity mutual fund launched and managed by Franklin Templeton International Services S.a.r l. The fund is co-managed by Franklin Templeton Investment Management Limited and Templeton Asset Management Ltd. It invests in the public equity markets of developing countries across the globe. The fund seeks to invest in stocks of companies operating across diversified sectors. It invests in stocks of companies across diversified market capitalizations. The fund employs fundamental analysis with a bottom-up stock picking approach focusing on factors like projected future earnings, cash flow or asset value potential as well as management capability and governance to create its portfolio. The fund benchmarks the performance of its portfolio against the MSCI Emerging Markets Index. Templeton Emerging Markets Investment Trust plc was formed on June 12, 1989 and is domiciled in the United Kingdom.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Templeton Emerging Markets Investment Trust plc reported revenue of £190M in FY2025 versus £925M in FY2021, a compound −32.7%/yr. Reported net income was £154M in FY2025, compounding −36.3%/yr from FY2021.

Revenue −32.7%/yr
FY21 £925M
FY22 −£430M
FY23 £13.3M
FY24 £173M
FY25 £190M
Net income −36.3%/yr
FY21 £934M
FY22 −£442M
FY23 £2.5M
FY24 £140M
FY25 £154M

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Frequently asked questions

Is Templeton Emerging Markets Investment Trust plc (TEM) undervalued?
As of Jun 26, 2026, our model estimates a fair value of £2.78 versus a price of £3.33 — about −17% (overvalued). Model-based estimate, not financial advice.
What is the fair value of TEM?
Our 21-model fair value for Templeton Emerging Markets Investment Trust plc is £2.78 (as of Jun 26, 2026), built from audited fundamentals. The current price is £3.33.
What is the quality score of TEM?
Templeton Emerging Markets Investment Trust plc has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Templeton Emerging Markets Investment Trust plc (TEM)?
Templeton Emerging Markets Investment Trust plc reported trailing-twelve-month revenue of about £524M (latest available figure, as of Jun 26, 2026).
What is the net profit margin of TEM?
The net profit margin of Templeton Emerging Markets Investment Trust plc is about 93.5%, meaning it keeps roughly 93.5% of revenue as net income. Based on the latest reported figures.
Does Templeton Emerging Markets Investment Trust plc pay a dividend?
Templeton Emerging Markets Investment Trust plc currently shows a dividend yield of about 1.57% relative to its recent price (as of Jun 26, 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.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.