Inditex (ITX.MC)
Consumer · BME · Europe
Fundamentals
Valuation and ratings
Inditex trades at €54.28, which is 39% above the €33.23 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 82 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 27.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Inditex
Industria de Diseño Textil, S.A., together with its subsidiaries, engages in the retail and online distribution of clothing, footwear, accessories, and household products in Spain, rest of Europe, the Americas, Asia, and internationally. The company sells its products under the Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Lefties, and Zara Home. It is also involved in the textile manufacturing, logistics, design, insurance, construction, buyer activities, and real estate businesses, as well as provides financial services. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in Corunna, Spain.
ITX.MC passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Inditex (ITX.MC) undervalued?
Against our discounted cash flow estimate of €33.23, ITX.MC at €54.28 is 39% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is ITX.MC's P/E ratio?
ITX.MC trades at 27.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.