TescoTSCDF 84 Debt-to-Equity is 1.32 as of Feb. 2026, which is 1% above its 10-year median of 1.31. GuruFocus rates TSCDF with a GF Score™ of 84/100 and a GF Value™ of $5.50 (Fairly Valued). The stock has 5 warning signs investors should review. Among 281 Retail - Defensive companies, Tesco ranks worse than 73.31% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Tesco's Debt-to-Equity or its related term are showing as below:
TSCDF'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.98 Med: 1.31 Max: 2.05
Current: 1.32
During the past 13 years, the highest Debt-to-Equity Ratio of Tesco was 2.05. The lowest was 0.98. And the median was 1.31.
TSCDF's Debt-to-Equity is ranked worse than 73.31% of 281
companies
in the Retail - Defensive industry
Industry Median: 0.55
vs TSCDF: 1.32
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Tesco Debt-to-Equity Related Terms
Tesco Debt-to-Equity Historical Data
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The historical data trend for Tesco's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Grocery Stores subindustry, Tesco's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tesco Debt-to-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Tesco's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Tesco's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tesco (TSCDF) has a Debt-to-Equity of 1.32 as of Feb. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Tesco and its competitors. This is near median its historical median of 1.31. Over the past decade, Tesco's Debt-to-Equity has ranged from 0.98 to 2.05. According to the industry distribution chart, Tesco ranks #206 out of 281 companies in the Retail - Defensive industry, placing it in the top 73.3%.
Is Tesco's Debt-to-Equity too high?
Tesco's current Debt-to-Equity of 1.32 is near median its 10-year median of 1.31. Over the past 10 years, this metric has ranged from a low of 0.98 to a high of 2.05. The Retail - Defensive industry median Debt-to-Equity is 0.55. Tesco's value of 1.32 is 140% above this industry median. Based on the distribution chart, Tesco ranks #206 out of 281 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Tesco has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tesco's Debt-to-Equity compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Tesco ranks #206 out of 281 companies for Debt-to-Equity. This places Tesco in the lower half of its industry. The industry median Debt-to-Equity is 0.55. Tesco's value of 1.32 is 140% above this benchmark. Historically, Tesco's own Debt-to-Equity has ranged from 0.98 to 2.05 over the past decade. While the company's 10-year median is 1.31 vs. the industry median of 0.55, Tesco has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Retail - Defensive company?
The median Debt-to-Equity among Retail - Defensive companies is 0.55, based on 281 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tesco's current Debt-to-Equity of 1.32 is 140% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Tesco and its competitors. For the Retail - Defensive industry, the median Debt-to-Equity is 0.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesco's current Debt-to-Equity is 1.32, which is near median its own 10-year median of 1.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tesco stock overvalued right now?
Based on GuruFocus' analysis, Tesco (TSCDF) is currently considered Fairly Valued. The stock's GF Value™ is $5.50, compared to a current price of $6.02 — trading 9.5% above its estimated fair value. The current Debt-to-Equity is 1.32, which is near median its 10-year median of 1.31 and 140% above the Retail - Defensive industry median of 0.55. Tesco's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Tesco (TSCDF), the current Debt-to-Equity is 1.32 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tesco (TSCDF) Overvalued in 2026?
Based on GuruFocus' analysis, Tesco stock appears to be overvalued.
The current stock price of $6.02 is trading 9.5% above its estimated GF Value™ of $5.50.
GuruFocus considers Tesco to be Fairly Valued.
Key valuation signals for TSCDF:
Debt-to-Equity: 1.32 (near median its 10-year median of 1.31)
GF Value™: $5.50 vs. price of $6.02 (9.5% above fair value)
Industry Position: 140% above the Retail - Defensive median (#206 of 281)
No single metric tells the full story. See the TSCDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tesco is a large food retailer, operating thousands of stores in the United Kingdom, Ireland, and Central Europe. The majority of Tesco's sales are from the UK, where the firm has over 24% market share, more than double the second-largest peer, Sainsbury's, according to Euromonitor. Tesco also holds 30% e-grocery market share in the UK, holding a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivery industries with the GBP 4 billion acquisition of Booker in 2018.
84GF Score
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