How to buy Tesco (TSCO) shares

Learn how to easily invest in Tesco shares.

Tesco PLC
LSE: TSCO - GBX
GROCERY STORES
p233.30
+p0.90 (+0.39%)

Tesco PLC (TSCO) is a leading grocery stores business based in the UK. It opened the day at 235.45p after a previous close of 234.25p. During the day the price has varied from a low of 235.0044p to a high of 238.1p. The latest price was 237.7p (25 minute delay). Tesco is listed on the London Stock Exchange (LSE) and employs 300,000 staff. All prices are listed in pence sterling.

How to buy shares in Tesco

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: TSCO in this case.
  5. Research Tesco shares. The platform should provide the latest information available.
  6. Buy your Tesco shares. It's that simple.
The whole process can take as little as 15 minutes.

How has coronavirus impacted Tesco's share price?

Since the stock market crash that started in February 2020, Tesco's share price has had significant negative movement.

Its last market close was 224p, which is 30.84% down on its pre-crash value of 323.89p (accounting for the 14 February 2021 split) and 15.19% down on the lowest point reached during the March 2020 crash when the shares fell as low as 258.02p (accounting for the 14 February 2021 split).

If you had bought £1,000 worth of Tesco shares at the start of February 2020, those shares would have been worth £852.56 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £710.51.

Tesco share price (LSE:TSCO)

Use our graph to track the performance of TSCO stocks over time.

Tesco shares at a glance

Information last updated 2021-07-09.
Open235.45p
High238.1p
Low235.0044p
Close237.7p
Previous close234.25p
Change3.45p
Change %1.4728%
Volume18,591,606
Information last updated 2021-07-23.
52-week range217.0443p - 316.9413p
50-day moving average229.0386p
200-day moving average244.4481p
Wall St. target price269.93p
PE ratio2.9119
Dividend yield11.6p (5%)
Earnings per share (TTM)80.6p
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Fees for buying 100x Tesco shares with popular platforms

Share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.

Platform Platform fee Min. initial deposit Trading fee estimate
eToro Free Stocks logo £0 $200 £0.00
£237.70 total
Capital at risk
Fineco logo £0 No minimum £0.00
£237.70 total
Capital at risk
Freetrade logo £0 No minimum £0.00
£237.70 total
Capital at risk
Degiro Share Dealing logo £0 £0.01 £1.78
£239.48 total
Capital at risk
Hargreaves Lansdown Fund and Share Account logo £0 £1 £11.95
£249.65 total
Capital at risk
interactive investor Trading Account logo £9.99 per month No minimum £7.99
£245.69 total
Capital at risk
Halifax Share Dealing Account logo £36 per year £20 £9.50
£247.20 total
Capital at risk

Full comparison of share dealing platforms

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Is it a good time to buy Tesco stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Tesco price performance over time

Historical closes compared with the last close of 237.7p

1 month (2021-06-25) 5.88%
3 months (2021-04-27) 7.34%
6 months (2021-01-23) inf%
1 year (2020-07-23) inf%
2 years (2019-07-23) inf%
3 years (2018-07-23) inf%
5 years (2016-07-23) inf%

Is Tesco under- or over-valued?

Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.

P/E ratio

Tesco's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 3x. In other words, Tesco shares trade at around 3x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

However, Tesco's P/E ratio is best considered in relation to those of others within the grocery stores industry or those of similar companies.

PEG ratio

Tesco's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 7.1908. Higher PEG ratios such as this can be interpreted as meaning the shares offer worse value given the current rate of growth.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Tesco's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

However, it's sensible to consider Tesco's PEG ratio in relation to those of similar companies.

EBITDA

Tesco's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £3.1 billion.

The EBITDA is a measure of a Tesco's overall financial performance and is widely used to measure a its profitability.

To put that into context you can compare it against similar companies.

Financials

Revenue TTM £57.9 billion
Operating margin TTM 3.64%
Gross profit TTM £3.2 billion
Return on assets TTM 2.66%
Return on equity TTM 5.61%
Profit margin 10.61%
Book value 1.609p
Market capitalisation £18.1 billion

TTM: trailing 12 months

Environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Tesco.

Total ESG risk score

Tesco's total ESG risk: 16.54

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Tesco's overall score of 16.54 (as at 12/31/2018) is excellent – landing it in it in the 15th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Tesco is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

To gain some more context, you can compare Tesco's total ESG risk score against those of similar companies.

Environmental score

Tesco's environmental score: 1.36/100

Social score

Tesco's social score: 5.97/100

Governance score

Tesco's governance score: 3.72/100

Controversy score

Tesco's controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Tesco scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Tesco hasn't always managed to keep its nose clean.

Wondering how that compares? Below are the controversy scores of similar companies.

Environmental, social, and governance (ESG) summary

Tesco PLC was last rated for ESG on: 2019-01-01.

Total ESG score 16.54
Total ESG percentile 15.28
Environmental score 1.36
Social score 5.97
Governance score 3.72
Level of controversy 3

Tesco share dividends

5.0%

Dividend yield: 5% of stock value

4.3%

Forward annual dividend yield: 4.32% of stock value

7.5%

Dividend payout ratio: 7.51% of net profits

Tesco has recently paid out dividends equivalent to 5.00% of its share value annually.

Tesco has paid out, on average, around 7.51% of recent net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.32% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), shareholders could enjoy a 4.32% return on their shares, in the form of dividend payments. In Tesco's case, that would currently equate to about 11.6p per share.

While Tesco's payout ratio might seem low, this can signify that the company is investing more in its future growth.

The latest dividend was paid out to all shareholders who bought their shares by 19 May 2021 (the "ex-dividend date").

Tesco's dividend yield is perhaps best considered in relation to those of similar companies.

Have Tesco's shares ever split?

Tesco's shares were split on a 15:19 basis on 14 February 2021. So if you had owned 19 shares the day before before the split, the next day you'd have owned 15 shares. This wouldn't directly have changed the overall worth of your Tesco shares – just the quantity. However, indirectly, the new 26.7% higher share price could have impacted the market appetite for Tesco shares which in turn could have impacted Tesco's share price.

Share price volatility

Over the last 12 months, Tesco's shares have ranged in value from as little as 217.0443p up to 316.9413p. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Tesco's is 0.4611. This would suggest that Tesco's shares are less volatile than average (for this exchange).

To put Tesco's beta into context you can compare it against those of similar companies.

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What stock exchanges is Tesco listed on?

In this guide, we've focused on Tesco's London Stock Exchange (LSE) listing. However, Tesco shares can be traded on multiple exchanges.

Country Exchange Stock Code
UK London Exchange LSE: TSCO
US US Stocks US: TSCDY
US US Stocks US: TSCDF
Mexico Mexican Exchange MX: TSCON
Germany XETRA Exchange XETRA: TCO
Germany Frankfurt Exchange F: TCO
Germany Stuttgart Exchange STU: TCO
Germany Dusseldorf Exchange DU: TCO
Tesco is the third-biggest retailer in the world by gross revenue.

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2 Responses

    Default Gravatar
    MendelMarch 13, 2020

    How much can I invest?

      Avatarfinder Customer Care
      CharisseMarch 20, 2020Staff

      Hi Mendel,

      Thanks for reaching out to Finder.

      The limit on how much you can invest in Tesco shares will depend on the platform you choose to invest with. You may want to contact the share-dealing platform and inquire with them directly.

      I hope this helps.

      Cheers,
      Charisse

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