# ITV plc (ITV.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Media. Price 71p, market value 2.6 billionp.

## Valuation
- **P/E (trailing): 11.8×** (5-yr avg 1046.8×, 3-yr avg 1123.8×). ITV plc trades at 11.8× trailing earnings, well below its own five-year average of 1046.8×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 8.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 3.4×**. Enterprise value is 3.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 18.3%** (5-yr avg 0.1%). Free cash flow equals 18.3% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.5%**. The inverse of the P/E: 8.5% of the price is earned each year.

## Profitability
- **Gross margin: 15.7%**. ITV plc keeps 15.7% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 14.7%**. 14.7% of revenue is left after running the business.
- **Net margin: 6.3%**. 6.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.2%**. 12.2% on shareholders' equity is solid.
- **Return on invested capital: 24.9%**. Return on all capital, debt included, is 24.9%: comfortably above what that capital costs.
- **Return on assets: 14.1%**. Each dollar of assets produces 14.1% of profit.

## Growth
- **Revenue growth (1 yr): 0.7%** (3-yr -2.0%/yr, 5-yr 4.8%/yr). Revenue grew 0.7% over the last year, against 4.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -41.8%** (3-yr -19.1%/yr, 5-yr -3.8%/yr). Earnings per share fell 41.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -8.0%/yr**. Free cash flow has compounded at -8.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.49**. Debt is 0.49 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.6×**. It would take 0.6 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.1×**. Operating profit covers interest 11.1× over, a safe margin.
- **Current ratio: 1.23** (quick 0.77). Current assets cover the next year's liabilities 1.23 times.
- **Altman Z-score: 2.50**. A Z-score of 2.50 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 7.03%** (0p per share, trailing). ITV plc yields 7.03%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 85%** (68% of free cash flow). 85% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Shareholder yield: 15.4%**. Dividends plus net buybacks return 15.4% of the market value a year.

## Price and momentum
- **Total return (1 yr): -13.7%** (YTD -13.6%, 3-mo -14.0%). The shares are down 13.7% over twelve months including dividends.
- **From 52-week high: -19.2%** (7.4% above the low). Trading 19% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 0.49** (volatility 30%). Beta of 0.49 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ITV.L · Page: https://foliofundamentals.com/stocks/itv.l

Not investment advice.