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Pepco Group B.V. (PCO) Fair Value & Analysis

Consumer Defensive · PL · Market cap 22.4B PLN (≈ $6.0B) · ISIN NL0015000AU7

What is Pepco Group B.V. really worth?

PG Pepco Group B.V. PCO · WAR
Price41.83 PLN
Fair Value54.81 PLN
Upside+31.0%
Quality67/100

A solid business, trading 24% below our fair value of 54.81 PLN.

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Strengths

Moderate debt · generates free cash flow

Risks

!Weak Growth (revenue 5y +5.2 %/yr)
!Thin margins · 4.0% net margin
!Mixed vs. peers (8/14)
!Moderate moat 57/100
!Evidence only medium, so the estimate is less certain
!Weak on future: 25 out of 100
!Weak on dividend: 5 out of 100

For context

·0.23% dividend yield
Evidence: Medium Range 41.03 PLN – 68.59 PLN

Fair value as of: Aug 30, 2026

From 16 valuation models · updated 6 days ago

Fair value updated Aug 30, 2026, revised from 54.38 PLN to 54.81 PLN (+0.8%) since Aug 13, 2026. Share price −10.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

54.55 PLN 13.82 PLN Fair Value 54.81 PLN May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range 13.82 PLN – 54.55 PLN · fair‑value band 41.03 PLN – 68.59 PLN · the 41.83 PLN price screens below the 54.81 PLN fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

Full chart & analysis →

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Analysis

Pepco Group B.V. (PCO) currently trades at 41.83 PLN, while our model-based Fair Value estimate is 54.81 PLN, implying the stock looks roughly 23.7% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Consumer Defensive sector. Bull case: the DCF Models group reads highest at a median of 17.26 PLN per share, and 0 of the 16 models we run sit above the 41.83 PLN price. Bear case: the Earnings-Based group reads lowest at 6.70 PLN, and 16 of the 16 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Pepco Group B.V. generated revenue of 4.6B PLN at a net margin of 4.0%. Revenue grew 5.0% year over year. It earns a return on equity of 85.1%. Net debt stands at 162M PLN. Fundamentals as of Aug 30, 2026

Our scenario range runs from 41.03 PLN (bear case) to 68.59 PLN (bull case); at 41.83 PLN, the current price sits within 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. Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic. The share trades near its 52-week high and 141% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at −43% fair-value upside, at 31%, PCO screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly 1.45 PLN per share, which is 2.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF 16.32 PLN 27.99 PLN 47.58 PLN 75
EPV 5.81 PLN 6.70 PLN 7.48 PLN 74
Growth DCF 16.31 PLN 27.30 PLN 45.44 PLN 74
All 16 models by family
DCF Models
FCF DCF 16.32 PLN 27.99 PLN 47.58 PLN 75
Owner Earnings 4.67 PLN 7.76 PLN 12.93 PLN 72
5Y Revenue Exit 9.91 PLN 15.03 PLN 21.64 PLN 70
5Y EBITDA Exit 14.18 PLN 23.62 PLN 35.14 PLN 72
10Y Revenue Exit 11.76 PLN 17.26 PLN 24.98 PLN 64
10Y EBITDA Exit 14.78 PLN 23.46 PLN 36.01 PLN 65
Earnings-Based
EPV 5.81 PLN 6.70 PLN 7.48 PLN 74
Dividend Discount
Gordon GGM 0.6000 PLN 1.25 PLN 1.98 PLN 64
DDM Multi-Stage 0.6000 PLN 1.05 PLN 1.31 PLN 64
Multiples
EV/EBIT 10.02 PLN 13.19 PLN 16.37 PLN 66
EV/EBITDA 14.34 PLN 18.96 PLN 23.58 PLN 67
EV/Revenue 6.91 PLN 9.67 PLN 12.42 PLN 54
Asset-Based
NCAV (Graham) 0.1500 PLN 0.2000 PLN 0.3000 PLN 54
Growth DCF
Growth DCF 16.31 PLN 27.30 PLN 45.44 PLN 74
Rev-Margin DCF 9.91 PLN 15.10 PLN 21.65 PLN 70
Economic Profit
ROIC Compounder 5.81 PLN 6.70 PLN 7.48 PLN 70

Widest divergence: DCF Models (17.26 PLN) versus Asset-Based (0.2000 PLN). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 25.5
P/S ratio 4.00 TTM
EPS (TTM) 1.64 PLN price ÷ EPS = P/E 25.5
Dividend yield 0.2% payout 5.9%
Net margin −3.9% FY2025
Return on equity 85.1% TTM
More key figures
Profitability
Return on assets (EBIT) 4.1% avg 5y
Operating margin 12.3% TTM
Growth
Revenue (TTM) 4.6B PLN TTM
Revenue growth (YoY) +5.0% 3y avg −2.1%
EPS growth (YoY) −33.3%
Balance sheet & cash flow
Free cash flow 694M PLN FY2025
Net debt 162M PLN FY2025 · ≈ 0.2 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 62 · Market factors (momentum, volatility) 83

Profitability 40
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 35
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 55
Calm price path (market factor)
Momentum 93
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 94
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Pepco Group N.V. operates as a variety discount retailer in the United Kingdom, the Republic of Ireland, Poland, and the rest of Europe. The company offers general merchandise; apparel for the whole family, including children's wear; household goods and toys; homeware; home décor; and seasonal products.

Full company description

Pepco Group N.V. operates as a variety discount retailer in the United Kingdom, the Republic of Ireland, Poland, and the rest of Europe. The company offers general merchandise; apparel for the whole family, including children's wear; household goods and toys; homeware; home décor; and seasonal products. In addition, the company provides direct product sourcing, product development, and technical services. Pepco Group N.V. operates stores under the Pepco, Poundland, and Dealz brands. The company was founded in 1990 and is based in London, the United Kingdom. Pepco Group N.V. is a subsidiary of Pepco Holdco Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pepco Group B.V. reported revenue of €4.5B in FY2025 versus €4.1B in FY2021, a compound +2.4%/yr. Reported net income was −€176M in FY2025.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
4.5B PLN
Latest YoY
−26.6%
Avg. revenue 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.
−2.1%
Avg. revenue 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.
+5.2%
Avg. revenue growth/yr (9Y) 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.
+24.1%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +2.4%/yr
FY21 €4.1B
FY22 €4.8B
FY23 €5.6B
FY24 €6.2B
FY25 €4.5B
Net income
FY21 €131M
FY22 €174M
FY23 €102M
FY24 −€710M
FY25 −€176M

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Cite: Fair Value Calculator (2026). "Pepco Group B.V. Fair Value". https://www.fairvalue-calculator.com/stock/PCO

Peer Group

Discount Stores · 24 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 67 · Top 25%
Fair Value upside +31% · Top 25%
Return on equity (TTM) 85% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 12% · Top 25%
Revenue growth 5% · Below median
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 1.20× · Higher than 75% of peers

Valuation Multiples vs Discount Stores median · lower = cheaper

P/E (TTM) 25.5× · Pricier than median
P/B 37.05× · Pricier than 75% of peers
P/S (TTM) 1.30× · Pricier than median
P/FCF 8.7× · Cheaper than median
EV/EBITDA 9.1× · Cheaper than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE75 · sector 15
FUTURE25 · sector 36
PAST100 · sector 81
HEALTH40 · sector 86
DIVIDEND5 · sector 51

Insider activity: 40/100

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

Similar stocks

10 more Discount Stores stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Walmart Inc WMT $103.09 $47.80 −54%
Costco Wholesale Corporation COST $934.66 $383.51 −59%
Target Corporation TGT $163.18 $116.90 −28%
Dollarama Inc DOL C$192.85 C$92.38 −52%
Avenue Supermarts Limited DMART ₹3,827 ₹921.40 −76%
Dollar General Corporation DG $120.08 $116.55 −3%
Dollar Tree, Inc DLTR $128.26 $125.92 −2%
540376 540376 ₹4,054 ₹1,542 −62%
BJ's Wholesale Club Holdings BJ $93.19 $80.26 −14%
PriceSmart, Inc PSMT $173.72 $98.60 −43%

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Frequently asked questions

Is Pepco Group B.V. (PCO) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of 54.81 PLN versus a price of 41.83 PLN, about +31% upside (undervalued).
What is the fair value of PCO?
Our model-based fair value for Pepco Group B.V. is 54.81 PLN (as of Aug 30, 2026), built from audited fundamentals. The current price: 41.83 PLN.
What is the quality score of PCO?
Pepco Group B.V. has a Quality Score of 67/100. 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 Pepco Group B.V. (PCO)?
Pepco Group B.V. reported trailing-twelve-month revenue of about 4.6B PLN (latest available figure, as of Aug 30, 2026).
What is the net profit margin of PCO?
The net profit margin of Pepco Group B.V. is about 4.0%, meaning it keeps roughly 4.0% of revenue as net income. Based on the latest reported figures.
Does Pepco Group B.V. pay a dividend?
Pepco Group B.V. currently shows a dividend yield of about 0.23% relative to its recent price (as of Aug 30, 2026).
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