Travis Perkins plc
Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline, insulation, and interior building products; provides managed and hi…
Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline, insulation, and interior building products; provides managed and hire services; designs and supplies kitchen offer under the Benchmarx; and commercial and industrial heating and cooling solutions. In addition, the company provides specialist civils and drainage solutions; and air-conditioning, refrigeration products, and heat pumps, as well as installation materials. Further, it provides kitchens and joinery products, as well as repair and maintenance management services for social housing landlords. The company markets its products under Travis Perkins, Toolstation, BSS, Keyline, CCF, and TF Solution brands. It sells its products through branches and distribution centres. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.Looks undervalued
5-year outlook: Not shown because confidence is low: EV/EBITDA (12x) agrees.
Other models: GBP 12.77–15.76 (median 14.27). 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 a three-year average of free cash flow, because the latest figure is depressed by heavy investment or one-off items, with cash, debt, and shares from the latest report. Base assumptions are 3% growth, 2.7% terminal growth, and 10% 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 3.47% because the latest annual revenue declined), discount rate 10%, terminal growth 2.70%. See a worked example.
Blended growth assumption: 3.5% (sector default 6.2%, own revenue history -0.1%, analyst revenue consensus 3.9%).
Analyst consensus expects revenue growth of 3.9% 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 14.45 (+121.0%)
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EPS-based Gordon proxy
— not applicable
Not used: Cannot be computed: net income is zero or negative.
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DCF (trailing free cash flow)
— GBP 16.00 (+144.7%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— GBP 15.76 (+141.0%)
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 12.77 (+95.3%)
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 15.99 (+144.5%)
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 36.18 (+453.2%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 10.03 | 34.8% |
| Base GBP 14.45 | 54.7% |
| Bull GBP 22.33 | 70.7% |
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 6.54 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.7%, discount 10.0%).
Compare: the market implies -10.7% 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 | 8.0% | 9.0% | 10.0% | 11.0% | 12.0% |
|---|---|---|---|---|---|
| -1.0% | 17.10 | 13.97 | 11.70 | 9.97 | 8.61 |
| 1.0% | 18.99 | 15.53 | 13.03 | 11.12 | 9.62 |
| 3.0% | 21.02 | 17.22 | 14.45 | 12.35 | 10.71 |
| 5.0% | 23.21 | 19.03 | 15.99 | 13.68 | 11.87 |
| 7.0% | 25.57 | 20.97 | 17.63 | 15.10 | 13.12 |
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: 46 / 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 | 3 of 5 years profitable | 12 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue -0.1% a year | 4 / 20 |
| Balance sheet | net debt 2.2x EBITDA | 10 / 20 |
| Margins | EBITDA margin 6% | 0 / 20 |
Peers in Industrials
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 |
|---|---|---|---|---|---|---|
| TPK.L (this company) | GBP 6.54 | 54.7% | – | 0.8 | 2.1% | 46 |
| EZJ.L easyJet plc | GBP 6.88 | 74.3% | 10.6 | 1.5 | 1.7% | 78 |
| WAWI.OL Wallenius Wilhelmsen ASA | NOK 160.80 | 64.7% | 7.1 | 2.2 | 0.3% | 100 |
| IAG.L International Consolidated Airlines Group S.A. | GBP 4.37 | 58.9% | 8.0 | 3.5 | 1.8% | 92 |
| SRP.L Serco Group plc | GBP 2.77 | 46.2% | 19.7 | 3.3 | 1.5% | 82 |
| DFDS.CO DFDS A/S | DKK 157.30 | 45.9% | – | 0.6 | – | 64 |
| DG.PA VINCI SA | EUR 111.75 | 42.2% | 12.9 | 2.1 | 4.2% | 90 |
| HAFNI.OL Hafnia Limited | NOK 89.00 | 40.8% | 7.2 | 1.8 | 1.2% | 100 |
| MPCC.OL MPC Container Ships ASA | NOK 24.23 | 33.5% | 5.5 | 1.1 | 0.7% | 80 |
| Peer median | 8.0 | 1.9 | ||||
Dividends
Paid in the last 12 months: GBP 0.00 per share · yield 0.02% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.001 |
| 2025 | 0.001 |
| 2024 | 0.001 |
| 2023 | 0.004 |
| 2022 | 0.004 |
| 2021 | 0.005 |
Annual financial statement
Saved annual report · Fiscal year 2025 · EODHD annual statements · period ended 31 Dec 2025
| Revenue | GBP 4,564,600,000 |
|---|---|
| EBITDA | GBP 277,100,000 |
| EBIT | GBP 112,200,000 |
| Net income | GBP -176,300,000 |
| Free cash flow | GBP 281,300,000 |
| Capital expenditures | GBP 73,800,000 |
| Debt | GBP 1,048,000,000 |
| Cash | GBP 426,900,000 |
| Working capital | GBP 723,300,000 |
| Shares outstanding | 211,697,889 |
| Reported dividends per share | GBP 0.1351 |