Greggs Shares Are Undervalued

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Greggs Shares Are Undervalued

Greggs Shares Are Undervalued. Should You Buy It?

Greggs' stock price is in a bullish phase in the short-to-medium term. This is mainly due to the strong performance during H1 2026. The results showed better-than-forecasted profits, and the company also expanded its store network during the period.

Despite the recent bullish run in the Greggs share price, it is still undervalued! So, should you buy Greggs shares? Let's look closely at the results.

Greggs Pre-Tax Profit Has Increased By 19.7%

During 1H2026, the pre-tax profit jumped by 19.7% and touched 76 million. Revenue reached 1101.5 million, with an increase of 7.2% during the same period. The operating profit also went up by 22.9%.

All of these are impressive results and highlight that Greggs is doing well. Another positive piece of news was the like-for-like sales, which have also increased by 2.1%. This was mainly driven by grocery partnerships and new stores.

Greggs has also partnered up with the Met Police, Boots, and Marks & Spencer to tackle the shoplifting problem. This also helped Greggs protect its margins.

But, despite the recent rally in the Greggs share price, it is still down by 38% over the 5-year period. So, Greggs stock still has enough upside ahead of it.

The forward P/E of Greggs is also only 14. That's a lot lower than the historical average. In fact, this forward P/E is also cheaper than the competition.

If we use the DCF model, it suggests that Greggs shares are undervalued by almost 51%. All of this tells us that Greggs shares are undervalued and have good upside potential.

So, if you want exposure to the bakery and fast-food industry, then you can definitely consider buying Greggs shares. Its efforts have already started to show, as seen in the results from the first half of 2026. If the momentum continues, Greggs is highly likely to give better results during the 2nd half of 2026.

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