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Whitbread PLC (WTB) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 3.8B GBX · ISIN GB00B1KJJ408

What is Whitbread PLC really worth?

WP Whitbread PLC WTB · LSE
Price£23.80
Fair Value£18.06
Upside−24.1%
Quality52/100

A solid business, but trading 32% above our fair value of £18.06.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 3y +3.6 %/yr)
!Thin margins · 7.3% net margin
!Mixed vs. peers (8/15)
!Moderate moat 47/100
!Weak on valuation: 1 out of 100
!Weak on future: 10 out of 100
!Weak on past: 26 out of 100

For context

·4.08% dividend yield
Evidence: High Range £15.12 – £27.66

Fair value as of: Aug 22, 2026

From 25 valuation models · updated 14 days ago

Share price −5.6% over the past month.

What runs behind every stock

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

What matters now

  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£15.12 to £27.66) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

£33.56 £20.14 Fair Value £18.06 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range £20.14 – £33.56 · fair‑value band £15.12 – £27.66 · the £23.80 price screens above the £18.06 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Whitbread PLC (WTB) currently trades at £23.80, while our model-based Fair Value estimate is £18.06, implying the stock looks roughly 31.8% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of £23.64 per share, and 7 of the 25 models we run sit above the £23.80 price. Bear case: the Growth DCF group reads lowest at £4.63, and 18 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Whitbread PLC generated revenue of £2.9B at a net margin of 7.3%. Revenue grew 2.0% year over year. It earns a return on equity of 6.6%. Net debt stands at £5.2B. Fundamentals as of Aug 22, 2026

Our scenario range runs from £15.12 (bear case) to £27.66 (bull case); at £23.80, 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. For context, the median of 10 Consumer Cyclical peers we cover trades at −61% fair-value upside, at −24%, WTB screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 6 months have passed since. In that time the company retained roughly £0.1288 per share, which is 0.7 % 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 £1.91 £4.79 £8.85 76
Residual Income £15.06 £15.82 £16.49 76
Growth DCF £2.04 £4.63 £8.10 75
All 25 models by family
DCF Models
FCF DCF £1.91 £4.79 £8.85 76
5Y Revenue Exit £6.77 £14.19 £23.60 70
5Y EBITDA Exit £29.42 £55.47 £85.57 73
5Y P/E Exit £9.71 £19.55 £29.66 69
10Y Revenue Exit £4.43 £10.64 £18.80 63
10Y EBITDA Exit £18.82 £38.27 £63.93 66
10Y P/E Exit £6.66 £14.22 £23.22 61
Earnings-Based
Graham-Dodd £8.66 £23.54 £30.85 65
Lynch FV £4.64 £6.62 £8.61 61
PEG = 1.0 £4.64 £6.62 £8.61 57
EPV £24.98 £29.59 £33.58 74
Dividend Discount
Gordon GGM £8.87 £17.67 £26.76 67
DDM Multi-Stage £8.87 £13.62 £18.47 66
Multiples
P/E Multiple £21.02 £28.02 £35.03 63
P/S Multiple £15.72 £20.97 £26.21 58
P/B Multiple £16.24 £21.65 £27.07 55
EV/EBIT £46.06 £62.83 £79.60 66
EV/EBITDA £52.24 £71.07 £89.90 67
EV/Revenue £10.43 £16.72 £23.01 53
Asset-Based
NCAV (Graham) £9.38 £12.57 £18.76 54
Growth DCF
Growth DCF £2.04 £4.63 £8.10 75
Rev-Margin DCF £6.77 £14.11 £22.19 70
Economic Profit
Residual Income £15.06 £15.82 £16.49 76
ROIC Compounder £26.03 £33.15 £41.38 72
Growth Earnings
Growth-Adj P/E £16.55 £23.64 £30.74 67

Widest divergence: Growth Earnings (£23.64) versus Growth DCF (£4.63). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 19.5
P/S ratio 1.42 P/E × margin
EPS (TTM) £1.22 price ÷ EPS = P/E 19.5
Dividend yield 4.1% payout 79.5%
Net margin 7.3% FY2026
Return on equity 6.6% TTM
More key figures
Profitability
Return on assets (EBIT) 4.7% avg 5y
Operating margin 17.3% TTM
Growth
Revenue (TTM) £2.9B TTM
Revenue growth (YoY) +2.0% 3y avg +3.6%
EPS growth (YoY) +2.1%
Balance sheet & cash flow
Free cash flow 98.5M GBX FY2026
Net debt 5.2B GBX FY2026 · ≈ 53.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 50 · Market factors (momentum, volatility) 43

Profitability 29
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 20
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.

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

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.

Full company description

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.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Whitbread PLC reported revenue of £2.9B in FY2026 versus £1.7B in FY2022, a compound +14.4%/yr. Reported net income was £213M in FY2026, compounding +49.6%/yr from FY2022. FY2022 was a trough year, so the rate overstates the trend.

Growth Quality 31/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
£2.9B
Latest YoY
−0.1%
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.
+3.6%
Avg. revenue 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.
+1.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+15.1% (11.0 + 4.1)
Revenue +14.4%/yr
FY22 £1.7B
FY23 £2.6B
FY24 £3.0B
FY25 £2.9B
FY26 £2.9B
Net income +49.6%/yr
FY22 £42.5M
FY23 £279M
FY24 £312M
FY25 £254M
FY26 £213M
Character of growth · EPS growth decomposed (2015-2026) −4.6 % p.a.
Revenue per share +0.2 %

of which total revenue +0.2 % · buybacks/dilution +0.0 %

EBIT margin +0.5 %
Tax rate −1.5 %
Residual (interest, one-offs) −3.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

WTB screens 32% overvalued. Compare with Marriott International, Inc →

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Cite: Fair Value Calculator (2026). "Whitbread PLC Fair Value". https://www.fairvalue-calculator.com/stock/WTB

Peer Group

Lodging · 165 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 52 · Below median
Fair Value upside −24% · Above median
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 17% · Above median
Revenue growth 2% · Below median
Dividend yield (TTM) 4.1% · Top 25%
Debt / equity 0.30× · Higher than median

Valuation Multiples vs Lodging median · lower = cheaper

P/E (TTM) 19.5× · Cheaper than median
P/B 1.65× · Pricier than median
P/S (TTM) 1.77× · Pricier than median
P/FCF 52.5× · Pricier than 75% of peers
EV/EBITDA 7.2× · Cheaper than median
PEG 2.27× · Pricier 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
VALUE1 · sector 0
FUTURE10 · sector 24
PAST26 · sector 12
HEALTH85 · sector 91
DIVIDEND82 · sector 26

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 Lodging stocks, each showing price versus our Fair Value estimate (as of Aug 22, 2026).

Stock Price Fair Value vs Fair Value
Marriott International, Inc MAR $341.76 $132.35 −61%
Hilton Worldwide Holdings HLT $314.35 $122.07 −61%
InterContinental Hotels Group IHG $161.82 $85.18 −47%
Hyatt Hotels Corporation H $178.37 $46.78 −74%
H World Group HTHT $41.25 $47.78 +16%
Accor SA AC €46.52 €36.87 −21%
The Indian Hotels Company INDHOTEL ₹723.35 ₹253.67 −65%
Wyndham Hotels & Resorts, Inc WH $74.02 $23.55 −68%
Hanjin Kal, 180640 139,100 KRW 36,890 KRW −73%
Choice Hotels International, Inc CHH $105.54 $61.72 −42%

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Frequently asked questions

Is Whitbread PLC (WTB) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of £18.06 versus a price of £23.80, about −24% upside (overvalued).
What is the fair value of WTB?
Our model-based fair value for Whitbread PLC is £18.06 (as of Aug 22, 2026), built from audited fundamentals. The current price: £23.80.
What is the quality score of WTB?
Whitbread PLC has a Quality Score of 52/100. 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 Whitbread PLC (WTB)?
Whitbread PLC reported trailing-twelve-month revenue of about £2.9B (latest available figure, as of Aug 22, 2026).
What is the net profit margin of WTB?
The net profit margin of Whitbread PLC is about 7.3%, meaning it keeps roughly 7.3% of revenue as net income. Based on the latest reported figures.
Does Whitbread PLC pay a dividend?
Whitbread PLC currently shows a dividend yield of about 4.08% relative to its recent price (as of Aug 22, 2026).
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