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Vertu Motors plc (VTU) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 235M GBX

VM Vertu Motors plc VTU · LSE
Price£0.8400
Fair Value£1.05
Upside+25.0%
Quality60/100
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Healthy Growth
Thin margins · 0.3% net margin
Low debt · generates free cash flow
2.78% dividend yield
Mixed vs. peers (6/14)
Narrow moat 26/100
Evidence: High Range £0.7900 – £1.32 Share as image

Fair value as of: Aug 13, 2026

From 25 valuation models · updated yesterday

Share price +11.1% over the past month.

A solid business, screening 25% undervalued on our models.

What matters now

  • Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from £0.7900 (bear) to £1.32 (bull), base £1.05. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 60/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£0.8540 £0.3426 Fair Value £1.05 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £0.3426 – £0.8540 · fair‑value band £0.7900 – £1.32 · the £0.8400 price screens below the £1.05 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Vertu Motors plc (VTU) currently trades at £0.8400, while our model-based Fair Value estimate is £1.05, implying the stock looks roughly 25.0% undervalued today. The Quality Score stands at 60/100 (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, Vertu Motors plc generated revenue of £4.8B at a net margin of 0.3%. Revenue grew 1.5% year over year. It earns a return on equity of 4.1%. Net debt stands at £159M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £0.7900 (bear case) to £1.32 (bull case); at £0.8400, 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 Cyclical peers we cover trades at -5% fair-value upside, at 25%, VTU 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 £0.9900 £1.52 £2.21 80
Residual Income £0.7900 £0.7600 £0.6000 76
ROIC Compounder £0.4300 £0.5000 £0.5600 72
All 25 models by family
DCF Models
FCF DCF £1.00 £1.60 £2.42 38
Owner Earnings £0.9100 £1.46 £2.20 31
5Y Revenue Exit £0.8400 £1.44 £2.21 39
5Y EBITDA Exit £1.46 £2.65 £4.11 41
5Y P/E Exit £0.7200 £1.20 £1.72 38
10Y Revenue Exit £0.8700 £1.39 £2.13 36
10Y EBITDA Exit £1.24 £2.14 £3.44 37
10Y P/E Exit £0.8300 £1.25 £1.79 35
Earnings-Based
Graham-Dodd £0.3300 £1.31 £1.78 54
Lynch FV £0.3300 £0.4700 £0.6100 50
PEG = 1.0 £0.3300 £0.4700 £0.6100 46
EPV £0.4300 £0.5000 £0.5600 59
Dividend Discount
Gordon GGM £0.1500 £0.2500 £0.3200 70
DDM Multi-Stage £0.1500 £0.2300 £0.2700 61
Multiples
P/E Multiple £0.7900 £1.05 £1.32 63
P/S Multiple £0.6100 £0.8100 £1.02 58
P/B Multiple £0.6100 £0.8100 £1.02 55
EV/EBIT £1.23 £1.70 £2.17 53
EV/EBITDA £2.02 £2.75 £3.48 54
EV/Revenue £0.7700 £1.17 £1.58 43
Asset-Based
NCAV (Graham) £0.5900 £0.7800 £1.17 50
Growth DCF
Growth DCF £0.9900 £1.52 £2.21 80
Economic Profit
Residual Income £0.7900 £0.7600 £0.6000 76
ROIC Compounder £0.4300 £0.5000 £0.5600 72
Growth Earnings
Growth-Adj P/E £0.5900 £0.8400 £1.09 68

Widest divergence: Growth DCF (£1.52) versus Dividend Discount (£0.2300). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 4.8B GBX
Revenue growth (YoY) +1.5%
Net margin 0.3%
Return on equity 4.1%
Free cash flow 40.8M GBX FY2026
P/E ratio 21.0
More key figures
Operating margin -0.2%
EPS (TTM) £0.0400
EPS growth (YoY) -83.0%
Net debt 159M GBX FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 59 · Market factors (momentum, volatility) 81

Profitability 44
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 82
Price trend over the last 3–12 months (market factor)
52W Momentum 90
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

Vertu Motors plc operates as an automotive retailer in the United Kingdom. It sells new and used cars and motorcycles, vans, motability cars, electric vehicles, and commercial vehicles, as well as provides related aftersales services.

Full company description

Vertu Motors plc operates as an automotive retailer in the United Kingdom. It sells new and used cars and motorcycles, vans, motability cars, electric vehicles, and commercial vehicles, as well as provides related aftersales services. The company operates chain of franchised dealerships offering sales, service, parts, and body shop facilities for new and used cars, and commercial vehicles under the Bristol Street Motors, Macklin Motors, and Vertu Motors. The company's franchise dealerships include Audi, BMW, Honda, Jaguar, Jeep, Kia, Volvo, Land Rover, Mercedes-Benz, Mercedes-AMG, MINI, smart, Volkswagen, Citroen, CUPRA, Dacia, Ford, Hyundai, MG, Nissan, Renault, SEAT, SKODA, Vauxhall, Mazda, BYD, Peugeot, and Toyota. In addition, it operates as a pension scheme trustee; provides vehicle financing and leasing services; maintenance and repair of motor vehicles; and payroll administration services. Further, the company is involved in the online van and parts retailing; online advertising; and property businesses. The company was incorporated in 2006 and is headquartered in Gateshead, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Vertu Motors plc reported revenue of £4.8B in FY2026 versus £3.6B in FY2022, a compound +7.5%/yr. Reported net income was £14.6M in FY2026, compounding −29.7%/yr from FY2022.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
£4.8B
Latest YoY
+1.5%
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.
+6.4%
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.
+13.7%
Avg. growth/yr (18Y) 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.
+11.5%
Revenue +7.5%/yr
FY22 £3.6B
FY23 £4.0B
FY24 £4.7B
FY25 £4.8B
FY26 £4.8B
Net income −29.7%/yr
FY22 £60.0M
FY23 £25.5M
FY24 £25.7M
FY25 £18.1M
FY26 £14.6M
Character of growth · EPS growth decomposed (2015-2026) −0.1 % p.a.
Revenue per share +8.1 pp

of which total revenue +7.7 pp · buybacks/dilution +0.4 pp

EBIT margin −1.7 pp
Tax rate −0.9 pp
Residual (interest, one-offs) −5.7 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). "Vertu Motors plc Fair Value". https://www.fairvalue-calculator.com/stock/VTU

Peer Group

Auto & Truck Dealerships · 104 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 60 · Top 25%
Fair Value upside +25% · Above median
Return on equity (TTM) 4% · Below median
Return on assets 3% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 1% · Below median
Revenue growth 2% · Below median
Dividend yield (TTM) 2.8% · Above median
Debt / equity 0.36× · Higher than median

Valuation Multiples vs Auto & Truck Dealerships median · lower = cheaper

P/E (TTM) 21.0× · Pricier than median
P/B 0.89× · Cheaper than median
P/S (TTM) 0.07× · Cheaper than 75% of peers
P/FCF 7.8× · Pricier than median
EV/EBITDA 4.0× · 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 66 · sector 26
FUTURE 8 · sector 9
PAST 16 · sector 20
HEALTH 82 · sector 90
DIVIDEND 56 · 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 Auto & Truck Dealerships stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Carvana Co CVNA $72.48 $24.58 -66%
Penske Automotive Group PAG $218.00 $217.41 -0%
D'Ieteren Group DIE €175.00 €105.40 -40%
Hotai Motor Co 2207 524.00 TWD 558.82 TWD +7%
CarMax, Inc KMX $58.71 $29.44 -50%
Lithia Motors, Inc LAD $378.55 $498.50 +32%
AutoNation, Inc AN $208.62 $329.77 +58%
Rush Enterprises, Inc RUSHA $80.63 $66.27 -18%
Valvoline Inc VVV $33.30 $24.55 -26%
OPENLANE, Inc OPLN $35.33 $33.46 -5%

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Frequently asked questions

Is Vertu Motors plc (VTU) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £1.05 versus a price of £0.8400, about +25% (undervalued).
What is the fair value of VTU?
Our model-based fair value for Vertu Motors plc is £1.05 (as of Aug 13, 2026), built from audited fundamentals. The current price is £0.8400.
What is the quality score of VTU?
Vertu Motors plc has a Quality Score of 60/100. 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 Vertu Motors plc (VTU)?
Vertu Motors plc reported trailing-twelve-month revenue of about £4.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of VTU?
The net profit margin of Vertu Motors plc is about 0.3%, meaning it keeps roughly 0.3% of revenue as net income. Based on the latest reported figures.

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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