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+B…
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.Looks overvalued
Other models: GBP 16.17–42.30 (median 29.23). The recommended value is in line with them.
Why: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.
Details and the full model are below.
Market price above modeled range
Uses reported dividends of GBP 0.9707 per share from Fiscal year 2026, with 3% perpetual growth (base growth capped at the terminal rate) and 10.8% discount rates. The range varies growth and discount assumptions by 1 percentage point; it is illustrative, not a statistical confidence interval or investment advice.
Assumptions: growth 3% (limited from 6.75% because the latest annual revenue declined), discount rate 10.80%, terminal growth 3%. See a worked example.
Blended growth assumption: 6.8% (sector default 7.2%, own revenue history 14.4%, analyst revenue consensus 2.7%).
5-year outlook: relative outlook of about 5.1% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 2.7% a year; the growth assumption used is 3.0%.
Adjust assumptions
Why this model: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.
Compare models- Recommended: Dividend discount model — GBP 12.82 (-54.1%)
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EPS-based Gordon proxy
— GBP 16.17 (-42.1%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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FCFF (steady state)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/EBITDA (12x)
— GBP 42.30 (+51.6%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/Sales (Rule of 40)
— GBP 100.63 (+260.6%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 10.10 | -176.2% |
| Base GBP 12.82 | -117.7% |
| Bull GBP 17.41 | -60.4% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 27.91 the market implies perpetual dividend growth of about this rate (discount rate 10.8%).
Compare: the market implies 7.1% a year, this model assumes 3.0%. The market expects more than this model does, which is why it reads as overvalued.
Sensitivity: base value per share
How the Dividend discount model value changes with growth (rows) and discount rate (columns). Green cells are above the current price. Dividend growth cannot exceed the long-run rate, so duplicate capped scenarios are omitted.
These are assumption-based scenarios, not a confidence interval. Scroll horizontally to see all discount rates.
| Growth \ Discount | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| -1.0% | 9.81 | 8.90 | 8.14 | 7.51 | 6.96 |
| 1.0% | 12.57 | 11.14 | 10.00 | 9.08 | 8.31 |
| 3.0% | 17.24 | 14.70 | 12.82 | 11.36 | 10.20 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 80 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +14.4% a year | 20 / 20 |
| Balance sheet | net debt 5.0x EBITDA | 0 / 20 |
| Margins | EBITDA margin 36% | 20 / 20 |
Peers in Consumer Discretionary
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| WTB.L (this company) | GBP 27.91 | -117.7% | 22.8 | 1.5 | 3.5% | 80 |
| KGF.L Kingfisher plc | GBP 3.70 | 45.5% | 26.8 | 1.1 | 3.3% | 74 |
| BWY.L Bellway p.l.c. | GBP 22.72 | 44.3% | 13.8 | 0.8 | 3.1% | 70 |
| INCH.L Inchcape plc | GBP 6.33 | 38.1% | 8.8 | 1.9 | 4.2% | 80 |
| ZAL.DE Zalando SE | EUR 27.37 | 36.9% | 108.0 | 2.6 | – | 80 |
| DECK Deckers Brands | USD 85.74 | 36.4% | 10.9 | 5.0 | – | 100 |
| LULU Lululemon Athletica | USD 109.52 | 34.7% | 8.7 | 2.6 | – | 100 |
| EXPE Expedia Group | USD 268.04 | 30.8% | 15.6 | 19.8 | 0.7% | 100 |
| BKNG Booking Holdings | USD 166.20 | 29.9% | 17.4 | – | 1.0% | 100 |
| Peer median | 14.7 | 2.6 | ||||
Dividends
Paid in the last 12 months: GBP 0.01 per share · yield 0.03% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.010 |
| 2025 | 0.010 |
| 2024 | 0.010 |
| 2023 | 0.008 |
| 2022 | 0.006 |
Annual financial statement
Saved annual report · Fiscal year 2026 · EODHD annual statements · period ended 28 Feb 2026
| Revenue | GBP 2,920,200,000 |
|---|---|
| EBITDA | GBP 1,049,000,000 |
| EBIT | GBP 622,800,000 |
| Net income | GBP 212,900,000 |
| Free cash flow | GBP 98,500,000 |
| Capital expenditures | GBP 655,700,000 |
| Debt | GBP 5,466,100,000 |
| Cash | GBP 233,700,000 |
| Working capital | GBP -501,800,000 |
| Shares outstanding | 173,900,000 |
| Reported dividends per share | GBP 0.9707 |