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Inchcape plc (INCH) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 2.8B GBX

IP Inchcape plc INCH · LSE
Price£8.19
Fair Value£16.27
Upside+98.7%
Quality62/100
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Mixed Growth
Thin margins · 3.0% net margin
Low debt · generates free cash flow
4.06% dividend yield
Ranks above peers (10/14)
Moderate moat 50/100
Evidence: High Range £10.83 – £21.46 Share as image

Fair value as of: Aug 13, 2026

From 25 valuation models · updated today

Fair value updated Aug 13, 2026, revised from £16.78 to £16.27 (−3.0%) since Jul 18, 2026. Share price +4.7% over the past month.

A solid business, screening 99% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£10.83). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (£10.83 to £21.46) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£8.66 £5.38 Fair Value £16.27 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £5.38 – £8.66 · fair‑value band £10.83 – £21.46 · the £8.19 price screens below the £16.27 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Inchcape plc (INCH) currently trades at £8.19, while our model-based Fair Value estimate is £16.27, implying the stock looks roughly 98.7% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Inchcape plc generated revenue of £9.1B at a net margin of 3.0%. Revenue grew 5.3% year over year. It earns a return on equity of 19.4%. Net debt stands at £607M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £10.83 (bear case) to £21.46 (bull case); at £8.19, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at -5% fair-value upside, at 99%, INCH screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £10.49 £14.13 £18.85 80
Residual Income £4.85 £6.35 £23.85 76
Rev-Margin DCF £11.67 £17.82 £24.32 74
All 25 models by family
DCF Models
FCF DCF £10.22 £14.13 £19.41 38
Owner Earnings £10.31 £14.25 £19.58 31
5Y Revenue Exit £11.67 £17.72 £25.16 39
5Y EBITDA Exit £12.74 £19.61 £27.24 41
5Y P/E Exit £11.11 £16.74 £22.29 38
10Y Revenue Exit £10.66 £15.86 £22.24 36
10Y EBITDA Exit £11.67 £17.10 £23.71 37
10Y P/E Exit £10.67 £15.21 £20.21 35
Earnings-Based
Graham-Dodd £5.31 £11.83 £15.11 54
PEG = 1.0 £1.91 £2.73 £3.55 46
EPV £9.92 £11.42 £12.71 59
Dividend Discount
Gordon GGM £2.54 £4.00 £5.56 70
DDM Multi-Stage £2.54 £3.64 £4.83 61
Multiples
P/E Multiple £12.87 £17.17 £21.46 63
P/S Multiple £9.95 £13.26 £16.58 58
P/B Multiple £9.95 £13.26 £16.58 55
EV/EBIT £19.67 £26.09 £32.50 53
EV/EBITDA £16.30 £21.60 £26.89 54
EV/Revenue £13.40 £18.96 £24.52 43
Asset-Based
NCAV (Graham) £1.80 £2.42 £3.61 50
Growth DCF
Growth DCF £10.49 £14.13 £18.85 80
Rev-Margin DCF £11.67 £17.82 £24.32 74
Economic Profit
Residual Income £4.85 £6.35 £23.85 76
ROIC Compounder £10.22 £12.15 £14.08 72
Growth Earnings
Growth-Adj P/E £9.57 £13.68 £17.78 68

Widest divergence: Multiples (£17.17) versus Asset-Based (£2.42). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 9.1B GBX
Revenue growth (YoY) +5.3%
Net margin 3.0%
Return on equity 19.4%
Free cash flow 340M GBX FY2025
P/E ratio 11.4
More key figures
Operating margin 6.7%
EPS (TTM) £0.7200
Dividend yield 4.1%
EPS growth (YoY) -45.6%
Net debt 607M GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 59 · Market factors (momentum, volatility) 62

Profitability 57
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Inchcape plc operates as an automotive distributor. It engages in the distribution, sales, and marketing of new and used vehicles, and parts.

Full company description

Inchcape plc operates as an automotive distributor. It engages in the distribution, sales, and marketing of new and used vehicles, and parts. The company provides aftersales service and body shop repairs; and vehicle parts, maintenance, finance, and insurance products and services, as well as product planning, logistics, brand and marketing, channel management, and digital retail services. It operates in the Asia Pacific, Europe, the Americas, and Africa. Inchcape plc was founded in 1847 and is headquartered in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Inchcape plc reported revenue of £9.1B in FY2025 versus £6.9B in FY2021, a compound +7.2%/yr. Reported net income was £272M in FY2025, compounding +23.5%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£9.1B
Latest YoY
−1.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.9%
Avg. growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.1%
Revenue +7.2%/yr
FY21 £6.9B
FY22 £8.1B
FY23 £11.4B
FY24 £9.3B
FY25 £9.1B
Net income +23.5%/yr
FY21 £117M
FY22 £245M
FY23 £270M
FY24 £421M
FY25 £272M
Character of growth · EPS growth decomposed (2014-2025) +7.8 % p.a.
Revenue per share +4.9 pp

of which total revenue +3.8 pp · buybacks/dilution +1.1 pp

EBIT margin +2.1 pp
Tax rate +0.1 pp
Residual (interest, one-offs) +0.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Inchcape plc Fair Value". https://www.fairvalue-calculator.com/stock/INCH

Peer Group

Auto & Truck Dealerships · 104 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Top 25%
Fair Value upside +98% · Top 25%
Return on equity (TTM) 19% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 7% · Top 25%
Revenue growth 5% · Above median
Dividend yield (TTM) 4.1% · Above median
Debt / equity 0.41× · Higher than median

Valuation Multiples vs Auto & Truck Dealerships median · lower = cheaper

P/E (TTM) 11.4× · Cheaper than median
P/B 2.98× · Pricier than 75% of peers
P/S (TTM) 0.41× · Pricier than median
P/FCF 11.0× · Pricier than 75% of peers
EV/EBITDA 5.8× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 27
FUTURE 27 · sector 9
PAST 78 · sector 20
HEALTH 80 · sector 90
DIVIDEND 81 · sector 51

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto & Truck Dealerships stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Carvana Co CVNA $72.48 $24.58 -66%
Penske Automotive Group PAG $218.00 $217.41 -0%
D'Ieteren Group DIE €175.00 €105.40 -40%
Hotai Motor Co 2207 524.00 TWD 558.82 TWD +7%
CarMax, Inc KMX $58.71 $29.44 -50%
Lithia Motors, Inc LAD $378.55 $498.50 +32%
AutoNation, Inc AN $208.62 $329.77 +58%
Rush Enterprises, Inc RUSHA $80.63 $66.27 -18%
Valvoline Inc VVV $33.30 $24.55 -26%
OPENLANE, Inc OPLN $35.33 $33.46 -5%

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Frequently asked questions

Is Inchcape plc (INCH) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £16.27 versus a price of £8.19, about +99% (undervalued).
What is the fair value of INCH?
Our model-based fair value for Inchcape plc is £16.27 (as of Aug 13, 2026), built from audited fundamentals. The current price is £8.19.
What is the quality score of INCH?
Inchcape plc has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Inchcape plc (INCH)?
Inchcape plc reported trailing-twelve-month revenue of about £9.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of INCH?
The net profit margin of Inchcape plc is about 3.0%, meaning it keeps roughly 3.0% of revenue as net income. Based on the latest reported figures.
Does Inchcape plc pay a dividend?
Inchcape plc currently shows a dividend yield of about 3.90% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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