In a devastated retail sector and a ready-to-wear segment subject to fierce competition and the dramatic arrival of Shein and others, Inditex has not only held its own, but has actually thrived.

The last ten years have been exceptional for the Spanish group. Over this period, it has doubled its sales, operating profit, net income, free cash flow, and dividend payouts—all while already starting from a high base.

Reflecting its exemplary management, its return on equity remains around 30%, despite a market capitalization that leaves no room for leverage. The family-owned group has therefore brilliantly combined caution and performance.

This extraordinary success has earned Inditex a clear valuation premium over its other listed peers in Europe, including those that have also distinguished themselves through elite management, such as the British company Next.

Historically, and in view of these high valuation multiples, MarketScreener has always welcomed the fact that the group has not succumbed to the trend of indiscriminate share buybacks, instead preferring to focus on increasing dividend payments, a large portion of which are special dividends.

For the time being, our analysts are not surprised that investors are responding with cautious enthusiasm to quarterly results that are stable but not particularly impressive.

At 8x equity, the group's market capitalization is at its ceiling, above its average of 6x equity and well above its floor of 4x equity, which it has only reached twice in 15 years - in 2009 and 2022.