Redrow Valuation

Is 1HO1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1HO1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1HO1 (€9.1) is trading below our estimate of fair value (€14.82)

Significantly Below Fair Value: 1HO1 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1HO1?

Key metric: As 1HO1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1HO1. This is calculated by dividing 1HO1's market cap by their current earnings.
What is 1HO1's PE Ratio?
PE Ratio12.2x
EarningsUK£208.00m
Market CapUK£2.53b

Price to Earnings Ratio vs Peers

How does 1HO1's PE Ratio compare to its peers?

The above table shows the PE ratio for 1HO1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.1x
BOSS Hugo Boss
10.6x13.1%€2.5b
EIN3 Einhell Germany
12.4x9.2%€739.4m
PUM PUMA
25.5x18.6%€6.6b
SUR Surteco Group
36.1x22.8%€316.3m
1HO1 Redrow
12.2x-0.7%€2.5b

Price-To-Earnings vs Peers: 1HO1 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (12.5x).


Price to Earnings Ratio vs Industry

How does 1HO1's PE Ratio compare vs other companies in the European Consumer Durables Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1HO1 12.2xIndustry Avg. 13.0xNo. of Companies11PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1HO1 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the European Consumer Durables industry average (14x).


Price to Earnings Ratio vs Fair Ratio

What is 1HO1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1HO1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: 1HO1 is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1HO1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€8.42
0%
6.6%€9.00€6.92n/a11
Nov ’25n/a
€8.42
0%
6.6%€9.00€6.92n/a11
Oct ’25n/a
€8.42
0%
6.6%€9.00€6.92n/a11
Sep ’25n/a
€8.42
0%
6.6%€9.00€6.92n/a11
Aug ’25€8.85
€8.46
-4.4%
7.2%€9.14€7.02n/a12
Jul ’25€7.85
€8.37
+6.6%
7.5%€9.08€6.98n/a12
Jun ’25€8.25
€8.23
-0.3%
7.2%€8.84€6.86n/a11
May ’25€7.40
€8.22
+11.1%
7.6%€8.90€6.91n/a11
Apr ’25€7.71
€7.82
+1.5%
14.4%€8.81€4.78n/a11
Mar ’25€7.60
€7.78
+2.4%
14.6%€8.84€4.79n/a11
Feb ’25€6.93
€7.56
+9.0%
13.2%€9.08€4.81n/a13
Jan ’25€6.94
€6.96
+0.3%
13.7%€8.69€4.75n/a14
Dec ’24€6.15
€6.88
+11.9%
15.3%€9.54€4.74n/a14
Nov ’24€5.51
€6.70
+21.8%
16.7%€9.47€4.25n/a15
Oct ’24€5.65
€6.64
+17.6%
16.5%€9.51€4.27n/a17
Sep ’24€5.49
€6.54
+19.3%
13.3%€7.59€4.32n/a16
Aug ’24€5.90
€6.51
+10.4%
14.1%€7.65€4.29€8.8515
Jul ’24€5.07
€6.59
+30.2%
12.2%€7.69€5.13€7.8515
Jun ’24€5.53
€6.66
+20.5%
11.1%€7.69€5.05€8.2514
May ’24€5.72
€6.45
+12.8%
12.0%€7.61€5.00€7.4014
Apr ’24€5.45
€6.30
+15.6%
13.0%€7.39€4.55€7.7113
Mar ’24€5.65
€6.29
+11.4%
13.0%€7.30€4.49€7.6014
Feb ’24€5.65
€6.14
+8.7%
14.5%€7.32€4.28€6.9314
Jan ’24€5.45
€6.31
+15.9%
15.0%€7.96€4.53€6.9414
Dec ’23€5.30
€6.37
+20.1%
12.9%€7.97€5.42€6.1514
Nov ’23€4.78
€7.08
+48.1%
22.7%€9.98€5.55€5.5113

Analyst Forecast: Target price is lower than the current share price.


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