How to buy Tesco shares | 215p

Own Tesco shares in just a few minutes.

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Tesco logo

Tesco PLC (TSCO) is a leading grocery stores business based in the UK. It opened the day at 217.1p after a previous close of 218.2p. During the day the price has varied from a low of 215p to a high of 220p. The latest price was 215p (25 minute delay). Tesco is listed on the London Stock Exchange (LSE) and employs 405,506 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.

How has Coronavirus impacted Tesco's share price?

Since the stock market crash in March caused by coronavirus, Tesco's share price has had significant negative movement.

Its last market close was 218.2p, which is 14.67% down on its pre-crash value of 255.7p and 7.12% up on the lowest point reached during the March crash when the shares fell as low as 203.7p.

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 £876.66.

Tesco share price

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

Tesco shares at a glance

Information last updated 2020-07-08.
Open217.1p
High220p
Low215p
Close215p
Previous close218.2p
Change -3.2p
Change % -1.467%
Volume 28,375,294
Information last updated 2020-08-02.
52-week range203.7p - 260.4p
50-day moving average 207.7394p
200-day moving average 229.8106p
Wall St. target price269.93p
PE ratio 23.2285
Dividend yield 0.09p (4.2%)
Earnings per share (TTM) 9.9p
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Share dealing platform comparison

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Your first 50 trades are free with Fineco, until 30/09/2020. T&Cs apply. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
No fees
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. Capital at risk.
eToro Free Stocks
0% commission, no markup, no ticket fee, no management fee
N/A
Withdrawal fee & GDP to USD deposit conversion
eToro is good for social trading - letting you mirror the portfolios of other traders. Capital at risk. 0% commission but other fees may apply.
Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Capital at risk.
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Compare up to 4 providers

Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Interactive Investor stocks and shares ISA
£100 or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Interactive Investor Pension
£25/month
Over 2,500 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
Moneyfarm Pension
Moneyfarm Pension
0.35%-0.75%
7 funds
£1,500 (initial investment)
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
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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. Capital is 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 215p

1 week (2020-07-29) N/A
1 month (2020-07-05) N/A
3 months (2020-05-07) -9.40%
6 months (2020-02-05) N/A
1 year (2019-08-05) N/A
2 years (2018-08-05) N/A
3 years (2017-08-05) N/A
5 years (2015-08-05) N/A

Is Tesco under- or over-valued?

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

Tesco's 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 23x. In other words, Tesco shares trade at around 23x recent earnings.

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

Tesco's PEG ratio

Tesco's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.5232. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

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.

Tesco's EBITDA

Tesco's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £4.1 billion.

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

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

Tesco financials

Revenue TTM £64.8 billion
Operating margin TTM 4.48%
Gross profit TTM £4.3 billion
Return on assets TTM 3.32%
Return on equity TTM 7.01%
Profit margin 1.5%
Book value 1.366p
Market capitalisation £21.3 billion

TTM: trailing 12 months

Tesco's 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.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Tesco's total ESG risk score

Total ESG risk: 16.34

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Tesco's overall score of 16.34 (as at 07/01/2020) is excellent – landing it in it in the 13rd 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.

Tesco's environmental score

Environmental score: 1.36/100

Tesco's social score

Social score: 6.26/100

Tesco's governance score

Governance score: 3.72/100

Tesco's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. 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: 2020-07-01.

Total ESG score 16.34
Total ESG percentile 13.42
Environmental score 1.36
Social score 6.26
Governance score 3.72
Level of controversy 3

Tesco share dividends

71%

Dividend payout ratio: 70.75% of net profits

Recently Tesco has paid out, on average, around 70.75% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.2% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Tesco shareholders could enjoy a 4.2% return on their shares, in the form of dividend payments. In Tesco's case, that would currently equate to about 0.09p per share.

Tesco's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 21 May 2020 (the "ex-dividend date").

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

Have Tesco's shares ever split?

Tesco's shares were split on a 3:1 basis on 6 July 1998. So if you had owned 1 share the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Tesco shares – just the quantity. However, indirectly, the new 66.7% lower share price could have impacted the market appetite for Tesco shares which in turn could have impacted Tesco's share price.

Tesco share price volatility

Over the last 12 months, Tesco's shares have ranged in value from as little as 203.7p up to 260.4p. 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 0.3843. 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.

Tesco overview

Tesco PLC, together with its subsidiaries, operates as a grocery retailer. The company operates through convenience and hypermarket store formats, as well as engages in the wholesale business. It also provides retail banking and insurance services. The company operates in the United Kingdom, the Republic of Ireland, the Czech Republic, Hungary, Poland, Slovakia, Malaysia, and Thailand. The company serves its customers through stores, as well as online. Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.

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

  1. 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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