Inchcape plc
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 produ…
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.Looks undervalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF is somewhat apart.
Other models: GBP 9.46–19.57 (median 10.22). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price below modeled range
Free-cash-flow DCF using Fiscal year 2025 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 3% growth, 3% terminal growth, and 10.8% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 3% (limited from 4.93% because the latest annual revenue declined), discount rate 10.80%, terminal growth 3%. See a worked example.
Blended growth assumption: 4.9% (sector default 7.2%, own revenue history 7.2%, analyst revenue consensus 2.7%).
Analyst consensus expects revenue growth of 2.7% a year; the growth assumption used is 3.0%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — GBP 10.22 (+61.5%)
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EPS-based Gordon proxy
— GBP 9.46 (+49.4%)
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)
— GBP 10.22 (+61.5%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— GBP 10.22 (+61.5%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— GBP 19.57 (+209.2%)
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)
— GBP 10.22 (+61.5%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— GBP 48.06 (+659.2%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 7.34 | 13.8% |
| Base GBP 10.22 | 38.1% |
| Bull GBP 15.16 | 58.2% |
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 6.33 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.0%, discount 10.8%).
Compare: the market implies -6.2% a year, this model assumes 3.0%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| -1.0% | 11.72 | 9.80 | 8.37 | 7.26 | 6.38 |
| 1.0% | 12.96 | 10.84 | 9.26 | 8.04 | 7.07 |
| 3.0% | 14.30 | 11.96 | 10.22 | 8.88 | 7.81 |
| 5.0% | 15.74 | 13.17 | 11.26 | 9.78 | 8.61 |
| 7.0% | 17.29 | 14.46 | 12.37 | 10.75 | 9.46 |
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 +7.2% a year | 20 / 20 |
| Balance sheet | net debt 0.9x EBITDA | 20 / 20 |
| Margins | EBITDA margin 7% | 0 / 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 |
|---|---|---|---|---|---|---|
| INCH.L (this company) | GBP 6.33 | 38.1% | 8.8 | 1.9 | 4.2% | 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 |
| DKNG DraftKings Inc. | USD 17.16 | 39.2% | – | 13.5 | – | 58 |
| DECK Deckers Brands | USD 85.74 | 38.2% | 12.2 | 5.0 | – | 100 |
| ZAL.DE Zalando SE | EUR 27.37 | 36.9% | 108.0 | 2.6 | – | 80 |
| CVNA Carvana | USD 71.95 | 34.6% | 9.5 | 3.7 | – | 87 |
| 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 | 15.6 | 3.7 | ||||
Dividends
Paid in the last 12 months: GBP 0.00 per share · yield 0.05% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.003 |
| 2025 | 0.003 |
| 2024 | 0.004 |
| 2023 | 0.003 |
| 2022 | 0.002 |
| 2021 | 0.001 |
Annual financial statement
Saved annual report · Fiscal year 2025 · EODHD annual statements · period ended 31 Dec 2025
| Revenue | GBP 9,100,000,000 |
|---|---|
| EBITDA | GBP 670,000,000 |
| EBIT | GBP 540,000,000 |
| Net income | GBP 272,000,000 |
| Free cash flow | GBP 340,000,000 |
| Capital expenditures | GBP 47,000,000 |
| Debt | GBP 1,264,000,000 |
| Cash | GBP 657,000,000 |
| Working capital | GBP 217,000,000 |
| Shares outstanding | 379,817,912 |
| Reported dividends per share | GBP 0.2659 |