J Sainsbury (SBRY.L)
Consumer · LSE · UK
Fundamentals
Valuation and ratings
J Sainsbury trades at £3.54, which is 96% below the £6.93 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 21 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 19.0 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 J Sainsbury
J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom. The company operates through Retail and Financial Services segments. It sells food, household, general merchandise, clothing, and fuel through convenience stores and supermarkets, as well as online channels. The company also provides banking and insurance services. It offers its products under the Sainsbury's, Argos, Habitat, Tu, Smart Charge, Nectar, Nectar360, and Sainsbury's Bank brand names. The company was founded in 1869 and is headquartered in London, the United Kingdom.
SBRY.L passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is J Sainsbury (SBRY.L) undervalued?
Against our discounted cash flow estimate of £6.93, SBRY.L at £3.54 is 96% 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 SBRY.L's P/E ratio?
SBRY.L trades at 19.0 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.