Marks and Spencer Group (MKS.L)
Consumer · LSE · UK
Fundamentals
Valuation and ratings
Marks and Spencer Group trades at £3.83, which is 21% below the £4.62 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 41 out of 100, which is little in the way of a 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 31.5 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 Marks and Spencer Group
Marks and Spencer Group plc operates various retail stores. It operates through Fashion, Home & Beauty; Food; International; and Ocado segments. The company offers womenswear, menswear, lingerie, kids wear, beauty, and home products through UK and ROI, retail stores, and online. It also provides meat, fish, protein deli and dairy; produce and floral; meals, frozen, and food on the move; core basket; beers, wines, and spirits; and impulse and events, and hospitality services. In addition, it operates international franchises; and provides banking services. The company also exports its products. The company was founded in 1884 and is based in London, the United Kingdom.
MKS.L 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 Marks and Spencer Group (MKS.L) undervalued?
Against our discounted cash flow estimate of £4.62, MKS.L at £3.83 is 21% below 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 MKS.L's P/E ratio?
MKS.L trades at 31.5 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.