There is a big gap between Tesco’s (LSE: TSCO) share price and the underlying business’s true value, in my view.

The market still prices the UK’s dominant grocer as if it were a low‑growth plodder rather than the disciplined, cash‑generating operator it has become. Yet its margin control, scale advantages and dependable earnings profile tell a far more compelling story.

So where should the stock really be trading now, based on its true worth? 

Key drivers for growth

The engine for share price gains in any stock is earnings growth momentum.

A risk for Tesco is the high degree of competition in the sector that may narrow its margins. Another is any further surge in the cost of living that may cause…