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Tesco PLC (TSCO) Fair Value & Analysis

Consumer Defensive · GB · Market cap 27.4B GBX

TP Tesco PLC TSCO · LSE
Price£4.45
Fair Value£5.95
Upside+33.8%
Quality97/100
Evidence: High Range £4.29 – £7.44

Fair value as of: Jun 24, 2026

From 26 valuation models · updated 5 days ago

Share price +7.2% over the past month.

Price vs Fair Value (12 months)

£4.73 £3.70 Fair Value £5.95 Jun 2025 Jun 2026

12‑month range £3.70 – £4.73 · fair‑value band £4.29 – £7.44 · the £4.45 price screens below the £5.95 fair value. As of Jun 24, 2026.

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Analysis

Tesco PLC (TSCO) currently trades at £4.45, while our model-based Fair Value estimate is £5.95 — implying the stock looks roughly 33.8% undervalued today. We read business quality at 97/100 (high 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, Tesco PLC generated revenue of £73.7B at a net margin of 2.4%. Revenue grew 7.2% year over year. It earns a return on equity of 15.5%. Net debt stands at £12.6B. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) 73.7B GBX
Revenue growth (YoY) +7.2%
Net margin 2.4%
Return on equity 15.5%
Free cash flow 2.8B GBX FY2026
P/E ratio 16.1
More key figures
Operating margin 4.0%
EPS (TTM) £0.2700
Dividend yield 3.3%
EPS growth (YoY) +53.7%
Net debt 12.6B GBX FY2026

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

Tesco PLC, together with its subsidiaries, operates as a grocery retailer in the United Kingdom, Republic of Ireland, the Czech Republic, Slovakia, and Hungary. The company offers grocery products through its stores, as well as online. It is also involved in the food and drink wholesaling activities. In addition, the company provides mobile virtual network operating services, as well as insurance products, such as for home, travel, pet, and car insurance products. Further, the company operates a network of convenience stores; and offers AI-enabled science, software, and trusted advice; and consultancy services. Tesco PLC was founded in 1919 and is based in Welwyn Garden City, the United Kingdom.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tesco PLC reported revenue of £73.7B in FY2026 versus £61.3B in FY2022, a compound +4.7%/yr. Reported net income was £1.8B in FY2026, compounding +4.8%/yr from FY2022.

Revenue +4.7%/yr
FY22 £61.3B
FY23 £65.8B
FY24 £68.2B
FY25 £69.9B
FY26 £73.7B
Net income +4.8%/yr
FY22 £1.5B
FY23 £737M
FY24 £1.2B
FY25 £1.6B
FY26 £1.8B

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Recent news

External third-party headlines (Yahoo Finance, Reuters and others) — not an editorial selection, not financial advice.

Similar stocks

6 more Grocery Stores stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

Stock Price Fair Value vs Fair Value
Lighting and Equipment Public Company L C$65.53 C$40.13 -39%
Loblaw Companies Limited LOBLY $11.28 $8.07 -28%
The Kroger Co KR $63.57 $26.18 -59%
Koninklijke Ahold Delhaize N.V AHODF $41.10 $61.32 +49%
Woolworths Group WOW A$37.63 A$12.52 -67%
George Weston Limited WN C$103.47 C$106.15 +3%

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Frequently asked questions

Is Tesco PLC (TSCO) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £5.95 versus a price of £4.45 — about +34% (undervalued). Model-based estimate, not financial advice.
What is the fair value of TSCO?
Our 21-model fair value for Tesco PLC is £5.95 (as of Jun 24, 2026), built from audited fundamentals. The current price is £4.45.
What is the quality score of TSCO?
Tesco PLC has a Quality Score of 97/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Tesco PLC (TSCO)?
Tesco PLC reported trailing-twelve-month revenue of about £73.7B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of TSCO?
The net profit margin of Tesco PLC is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.
Does Tesco PLC pay a dividend?
Tesco PLC currently shows a dividend yield of about 3.33% relative to its recent price (as of Jun 24, 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.