Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
DCF Valuation
Base-case fair value
£3.21
Intrinsic £4.28 · 25% MOS
Current price: £4.57
Base-case summary
Our base-case DCF for Tesco plc (TSCO.XLON) projects 10 years of free cash flow growth at 2.0% for years 1–5 and 1.0% for years 6–10, anchored to a default 8% growth assumption, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from £2.2B in trailing free cash flow, this produces an intrinsic value of £4.28 per share. A 25% safety margin gives a fair value of £3.21, suggesting the stock is currently 30% overvalued against the £4.57 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
£2.2B
Cash & equivalents
£4.1B
Total debt
£15.1B
Shares outstanding
6.5B