Toll Brothers Valuation

Is 0LFS 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 0LFS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0LFS ($157.16) is trading above our estimate of fair value ($87.04)

Significantly Below Fair Value: 0LFS is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0LFS?

Key metric: As 0LFS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LFS. This is calculated by dividing 0LFS's market cap by their current earnings.
What is 0LFS's PE Ratio?
PE Ratio10.3x
EarningsUS$1.54b
Market CapUS$15.91b

Price to Earnings Ratio vs Peers

How does 0LFS's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LFS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.4x
BTRW Barratt Redrow
52.3x42.7%UK£6.0b
BKG Berkeley Group Holdings
11.1x-4.2%UK£4.4b
TW. Taylor Wimpey
18.6x17.0%UK£4.6b
PSN Persimmon
15.7x18.8%UK£4.0b
0LFS Toll Brothers
10.3x1.8%US$15.9b

Price-To-Earnings vs Peers: 0LFS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (24.4x).


Price to Earnings Ratio vs Industry

How does 0LFS's PE Ratio compare vs other companies in the European Consumer Durables Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0LFS 10.3xIndustry Avg. 12.4xNo. of Companies11PE0816243240+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0LFS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the European Consumer Durables industry average (12.4x).


Price to Earnings Ratio vs Fair Ratio

What is 0LFS'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.

0LFS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.3x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: 0LFS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).


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 0LFS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$157.16
US$157.60
+0.3%
13.4%US$189.00US$108.00n/a17
Nov ’25US$146.30
US$156.36
+6.9%
12.7%US$181.00US$108.00n/a17
Oct ’25US$154.15
US$152.88
-0.8%
12.8%US$181.00US$108.00n/a17
Sep ’25US$142.30
US$151.70
+6.6%
12.8%US$181.00US$108.00n/a17
Aug ’25US$138.33
US$137.25
-0.8%
13.1%US$180.00US$107.00n/a16
Jul ’25US$112.30
US$138.06
+22.9%
12.2%US$177.00US$107.00n/a16
Jun ’25US$120.26
US$135.29
+12.5%
13.9%US$177.00US$107.00n/a16
May ’25US$118.20
US$128.21
+8.5%
13.9%US$160.00US$100.00n/a17
Apr ’25US$129.50
US$124.26
-4.0%
13.9%US$160.00US$96.00n/a18
Mar ’25US$116.43
US$121.98
+4.8%
11.1%US$141.00US$96.00n/a18
Feb ’25US$100.26
US$110.66
+10.4%
10.5%US$130.00US$87.00n/a18
Jan ’25US$103.27
US$104.75
+1.4%
12.1%US$127.00US$78.00n/a16
Dec ’24US$87.98
US$90.82
+3.2%
14.2%US$110.00US$66.00n/a17
Nov ’24US$73.90
US$90.06
+21.9%
15.1%US$110.00US$66.00US$146.3016
Oct ’24US$74.32
US$92.20
+24.1%
13.9%US$110.00US$66.00US$154.1515
Sep ’24US$83.92
US$92.06
+9.7%
13.5%US$110.00US$66.00US$142.3016
Aug ’24US$79.75
US$82.50
+3.4%
12.4%US$100.00US$66.00US$138.3316
Jul ’24US$78.82
US$78.25
-0.7%
12.1%US$94.00US$57.00US$112.3016
Jun ’24US$68.12
US$77.38
+13.6%
12.0%US$94.00US$57.00US$120.2616
May ’24US$63.59
US$66.20
+4.1%
12.7%US$80.00US$50.00US$118.2015
Apr ’24US$59.70
US$65.67
+10.0%
13.4%US$80.00US$50.00US$129.5015
Mar ’24US$59.70
US$65.13
+9.1%
14.5%US$80.00US$50.00US$116.4315
Feb ’24US$58.76
US$60.07
+2.2%
14.3%US$78.00US$44.00US$100.2615
Jan ’24US$50.51
US$56.46
+11.8%
11.8%US$66.00US$44.00US$103.2713
Dec ’23US$49.13
US$53.92
+9.8%
12.8%US$66.00US$44.00US$87.9813
Nov ’23US$42.56
US$53.00
+24.5%
13.1%US$66.00US$44.00US$73.9013

Analyst Forecast: Target price is less than 20% higher than the current share price.


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