Independent equity research
Is Industria de Diseño Textil, S.A. (Inditex) (ITX) a Buy, Hold or Sell?
Industria de Diseño Textil, S.A. (Inditex) — our independent, AI-built valuation and rating, in brief.
SELL
12-mo fair value
€38.30
To fair value
−28%
By · report dated 2026-09-14 · fair value derived independently of the market price.
The thesis, in brief
At EUR 53.96 Inditex prices in 5.8% perpetual growth against a 4.2% sustainable rate (12.6% retention on a 33.7% ROE), so a 3.2% yield plus growth returns about 7.5% versus a 9.2% cost of equity; we are wrong if constant-currency sales hold 9% while the EBIT margin expands
How we value it
We value Industria de Diseño Textil, S.A. (Inditex) using 10-yr FCFF DCF, post-lease owner cash flow, 8.96% WACC, 3.0% terminal g; cross-checked on EV/EBITDA, fwd P/E and a DDM. The 12-month fair value is set from that intrinsic estimate first, then compared to the market to read the upside or downside — never anchored to the current price.
What the full report covers
- Business & moat + industry cycle
- Earnings quality & normalization
- ROTCE vs cost of equity
- Balance-sheet safety & capital (CET1)
- P/TBV + excess-return / residual-income
- Bear / base / bull fair values
- Earnings-call analysis
- Insider activity & positioning
- Technicals (RSI / ADX)
- A falsifiable thesis
Read the full Industria de Diseño Textil, S.A. (Inditex) report
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