Redrow plc

BATS-CHIXE:RDWL Stock Report

Market Cap: UK£2.5b

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Redrow Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: RDWL (£7.9) is trading below our estimate of fair value (£12.28)

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

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

How does RDWL's PE Ratio compare to its peers?

The above table shows the PE ratio for RDWL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.8x
BWY Bellway
22.5x21.9%UK£3.0b
BTRW Barratt Redrow
53.6x42.7%UK£6.1b
BKG Berkeley Group Holdings
10.8x-4.2%UK£4.4b
VTY Vistry Group
8.4x13.3%UK£2.2b
RDWL Redrow
12.2x-0.7%UK£2.5b

Price-To-Earnings vs Peers: RDWL is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies11PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RDWL is good value based on its Price-To-Earnings Ratio (12.2x) compared to the European Consumer Durables industry average (14.1x).

Price to Earnings Ratio vs Fair Ratio

What is RDWL'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.

RDWL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio13.6x

Price-To-Earnings vs Fair Ratio: RDWL is good value based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

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 RDWL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£7.11
0%
7.2%UK£7.68UK£5.90n/a12
Nov ’25n/a
UK£7.11
0%
7.2%UK£7.68UK£5.90n/a12
Oct ’25n/a
UK£7.11
0%
7.2%UK£7.68UK£5.90n/a12
Sep ’25n/a
UK£7.11
0%
7.2%UK£7.68UK£5.90n/a12
Aug ’25UK£7.54
UK£7.11
-5.7%
7.2%UK£7.68UK£5.90n/a12
Jul ’25UK£6.73
UK£7.08
+5.2%
7.5%UK£7.68UK£5.90n/a12
Jun ’25UK£7.12
UK£7.08
-0.6%
7.2%UK£7.60UK£5.90n/a11
May ’25UK£6.41
UK£7.03
+9.7%
7.6%UK£7.60UK£5.90n/a11
Apr ’25UK£6.69
UK£6.71
+0.3%
14.4%UK£7.56UK£4.10n/a11
Mar ’25UK£6.63
UK£6.65
+0.4%
14.6%UK£7.56UK£4.10n/a11
Feb ’25UK£5.94
UK£6.44
+8.5%
13.2%UK£7.74UK£4.10n/a13
Jan ’25UK£6.13
UK£6.01
-1.9%
13.7%UK£7.50UK£4.10n/a14
Dec ’24UK£5.49
UK£5.95
+8.4%
15.3%UK£8.25UK£4.10n/a14
Nov ’24UK£4.91
UK£5.84
+18.9%
16.7%UK£8.25UK£3.70n/a15
Oct ’24UK£4.97
UK£5.76
+15.9%
16.5%UK£8.25UK£3.70n/a17
Sep ’24UK£4.74
UK£5.60
+18.3%
13.3%UK£6.50UK£3.70n/a16
Aug ’24UK£5.13
UK£5.62
+9.7%
14.1%UK£6.60UK£3.70UK£7.5415
Jul ’24UK£4.41
UK£5.66
+28.2%
12.2%UK£6.60UK£4.40UK£6.7315
Jun ’24UK£4.90
UK£5.81
+18.5%
11.1%UK£6.70UK£4.40UK£7.1214
May ’24UK£5.18
UK£5.68
+9.7%
12.0%UK£6.70UK£4.40UK£6.4114
Apr ’24UK£4.75
UK£5.54
+16.6%
13.0%UK£6.50UK£4.00UK£6.6913
Mar ’24UK£4.94
UK£5.60
+13.4%
13.0%UK£6.50UK£4.00UK£6.6314
Feb ’24UK£5.19
UK£5.45
+5.2%
14.5%UK£6.50UK£3.80UK£5.9414
Jan ’24UK£4.57
UK£5.43
+18.8%
15.0%UK£6.85UK£3.90UK£6.1314
Dec ’23UK£4.71
UK£5.47
+16.3%
12.9%UK£6.85UK£4.66UK£5.4914
Nov ’23UK£4.26
UK£6.10
+43.1%
22.7%UK£8.60UK£4.78UK£4.9113

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

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