Barratt Redrow Valuation

Is 3BA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 3BA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3BA (€4.82) is trading below our estimate of fair value (€9.26)

Significantly Below Fair Value: 3BA is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3BA?

Other financial metrics that can be useful for relative valuation.

3BA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA13.5x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does 3BA's PE Ratio compare to its peers?

The above table shows the PE ratio for 3BA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.4x
PUM PUMA
26.9x18.6%€6.9b
BOSS Hugo Boss
12.7x13.4%€2.7b
EIN3 Einhell Germany
13x9.8%€723.6m
TMHC Taylor Morrison Home
8.9x8.8%US$7.3b
3BA Barratt Redrow
50.9x42.7%€5.8b

Price-To-Earnings vs Peers: 3BA is expensive based on its Price-To-Earnings Ratio (50.9x) compared to the peer average (15.4x).


Price to Earnings Ratio vs Industry

How does 3BA's PE Ratio compare vs other companies in the European Consumer Durables Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 3BA is expensive based on its Price-To-Earnings Ratio (50.9x) compared to the European Consumer Durables industry average (12.6x).


Price to Earnings Ratio vs Fair Ratio

What is 3BA'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.

3BA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio50.9x
Fair PE Ratio40.5x

Price-To-Earnings vs Fair Ratio: 3BA is expensive based on its Price-To-Earnings Ratio (50.9x) compared to the estimated Fair Price-To-Earnings Ratio (40.5x).


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 3BA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€4.82
€6.98
+44.7%
10.5%€9.14€6.02n/a16
Nov ’25€5.16
€7.01
+35.8%
10.0%€9.14€6.01n/a16
Oct ’25€5.60
€6.95
+24.0%
10.3%€9.10€5.99n/a16
Sep ’25€5.90
€6.67
+13.0%
13.2%€9.02€5.10n/a15
Aug ’25€6.07
€6.44
+6.0%
14.6%€9.05€5.12n/a14
Jul ’25€5.62
€6.40
+13.9%
13.9%€8.73€5.07n/a14
Jun ’25€5.75
€6.32
+10.0%
13.9%€8.60€5.00n/a13
May ’25€5.20
€6.33
+21.7%
14.2%€8.65€5.02n/a13
Apr ’25€5.40
€6.15
+13.9%
16.9%€8.62€4.31n/a13
Mar ’25€5.66
€6.38
+12.7%
19.8%€8.80€4.33n/a13
Feb ’25€6.16
€6.47
+5.0%
16.9%€8.83€4.34n/a16
Jan ’25€6.32
€6.01
-4.9%
18.4%€8.72€4.29n/a16
Dec ’24€5.80
€5.89
+1.6%
18.1%€8.71€4.28n/a16
Nov ’24€4.75
€5.89
+23.9%
18.3%€8.63€4.24€5.1617
Oct ’24€4.86
€5.85
+20.4%
18.3%€8.68€4.27€5.6019
Sep ’24€5.16
€6.00
+16.3%
18.7%€8.81€4.33€5.9019
Aug ’24€5.18
€5.95
+14.8%
18.7%€8.72€4.29€6.0719
Jul ’24€4.66
€6.44
+38.2%
15.7%€8.78€5.01€5.6219
Jun ’24€5.24
€6.41
+22.3%
14.6%€8.64€4.93€5.7518
May ’24€5.44
€6.09
+12.0%
14.0%€8.06€4.88€5.2017
Apr ’24€5.25
€5.83
+11.0%
15.9%€8.07€4.44€5.4016
Mar ’24€5.20
€5.85
+12.5%
15.6%€8.07€4.43€5.6617
Feb ’24€5.10
€5.66
+10.9%
15.1%€8.00€4.39€6.1617
Jan ’24€4.52
€5.74
+27.0%
17.6%€8.25€4.42€6.3217
Dec ’23€4.48
€5.73
+27.9%
18.1%€8.26€4.14€5.8017
Nov ’23€4.26
€5.96
+39.9%
20.8%€8.24€4.13€4.7516

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies