Whitbread plc (WTB.L)
Consumer · LSE · UK
Fundamentals
Valuation and ratings
Whitbread plc trades at £23.80, which is 21% above the £18.76 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 37 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 19.1 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 Whitbread plc
Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, Ireland, and internationally. The company operates hotels under the Premier Inn, ZIP by Premier Inn, and hub by Premier Inn brands. It also operates restaurants under the Brewers Fayre, Beefeater, Cookhouse and Pub, Bar+Block Steakhouse, Thyme, Whitebread Inns, and Table Table brands. Whitbread plc was founded in 1742 and is headquartered in Dunstable, the United Kingdom.
WTB.L passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Whitbread plc (WTB.L) undervalued?
Against our discounted cash flow estimate of £18.76, WTB.L at £23.80 is 21% 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 WTB.L's P/E ratio?
WTB.L trades at 19.1 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.