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.
HOLD (trim into strength)
12-mo fair value
€51.00
To fair value
−6%
By · report dated 2026-08-25 · fair value derived independently of the market price.
The thesis, in brief
Inditex earns 42% ROIC with zero financial debt and EUR 10.8bn of net cash, but at 27x FY2026E EPS and 14.7x post-lease EBITDA the price already pays for durable 6-7% constant-currency growth. We are wrong if FY2026 closes above 8% cc with gross margin above 58.8%
How we value it
We value Industria de Diseño Textil, S.A. (Inditex) using DCF on owner free cash flow, half-weighted with EV/EBITDA and P/E on FY2026E. 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 & normalized EPS
- Returns on capital (ROIC vs WACC)
- Balance-sheet safety
- Two independent valuations (DCF + multiples)
- 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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