Barratt Redrow Valuation

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

Below Fair Value: BTRW (£4) is trading below our estimate of fair value (£7.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BTRW. This is calculated by dividing BTRW's market cap by their current earnings.
What is BTRW's PE Ratio?
PE Ratio	50.6x
Earnings	UK£114.10m
Market Cap	UK£5.77b

BTRW 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/Revenue	1.2x
Enterprise Value/EBITDA	13.4x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BTRW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	16.7x
TW. Taylor Wimpey	18.3x	17.0%	UK£4.5b
BKG Berkeley Group Holdings	10.8x	-4.2%	UK£4.3b
PSN Persimmon	15.5x	18.8%	UK£4.0b
BWY Bellway	22.2x	21.9%	UK£2.9b
BTRW Barratt Redrow	50.6x	42.7%	UK£5.8b

Price-To-Earnings vs Peers: BTRW is expensive based on its Price-To-Earnings Ratio (50.6x) compared to the peer average (16.7x).

Price to Earnings Ratio vs Industry

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

5 Companies	Price / Earnings	Estimated Growth	Market Cap

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BTRW is expensive based on its Price-To-Earnings Ratio (50.6x) compared to the European Consumer Durables industry average (12.6x).

Price to Earnings Ratio vs Fair Ratio

What is BTRW'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.

BTRW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	50.6x
Fair PE Ratio	42.3x

Price-To-Earnings vs Fair Ratio: BTRW is expensive based on its Price-To-Earnings Ratio (50.6x) compared to the estimated Fair Price-To-Earnings Ratio (42.3x).

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 BTRW forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	UK£4.00	UK£5.80 +45.0%	10.5%	UK£7.60	UK£5.00	n/a	16
Nov ’25	UK£4.48	UK£5.83 +30.0%	10.0%	UK£7.60	UK£5.00	n/a	16
Oct ’25	UK£4.80	UK£5.80 +20.8%	10.3%	UK£7.60	UK£5.00	n/a	16
Sep ’25	UK£5.07	UK£5.62 +10.8%	13.2%	UK£7.60	UK£4.30	n/a	15
Aug ’25	UK£5.34	UK£5.41 +1.3%	14.6%	UK£7.60	UK£4.30	n/a	14
Jul ’25	UK£4.78	UK£5.43 +13.6%	13.9%	UK£7.40	UK£4.30	n/a	14
Jun ’25	UK£5.03	UK£5.44 +8.1%	13.9%	UK£7.40	UK£4.30	n/a	13
May ’25	UK£4.54	UK£5.42 +19.4%	14.2%	UK£7.40	UK£4.30	n/a	13
Apr ’25	UK£4.76	UK£5.28 +10.9%	16.9%	UK£7.40	UK£3.70	n/a	13
Mar ’25	UK£4.79	UK£5.46 +13.9%	19.8%	UK£7.53	UK£3.70	n/a	13
Feb ’25	UK£5.35	UK£5.51 +3.1%	16.9%	UK£7.53	UK£3.70	n/a	16
Jan ’25	UK£5.63	UK£5.19 -7.8%	18.4%	UK£7.53	UK£3.70	n/a	16
Dec ’24	UK£5.20	UK£5.09 -2.0%	18.1%	UK£7.53	UK£3.70	n/a	16
Nov ’24	UK£4.18	UK£5.13 +23.0%	18.3%	UK£7.53	UK£3.70	UK£4.48	17
Oct ’24	UK£4.41	UK£5.08 +15.1%	18.3%	UK£7.53	UK£3.70	UK£4.80	19
Sep ’24	UK£4.51	UK£5.13 +13.9%	18.7%	UK£7.53	UK£3.70	UK£5.07	19
Aug ’24	UK£4.59	UK£5.13 +11.8%	18.7%	UK£7.53	UK£3.70	UK£5.34	19
Jul ’24	UK£4.14	UK£5.53 +33.6%	15.7%	UK£7.53	UK£4.30	UK£4.78	19
Jun ’24	UK£4.69	UK£5.59 +19.2%	14.6%	UK£7.53	UK£4.30	UK£5.03	18
May ’24	UK£5.00	UK£5.37 +7.3%	14.0%	UK£7.10	UK£4.30	UK£4.54	17
Apr ’24	UK£4.67	UK£5.12 +9.8%	15.9%	UK£7.10	UK£3.90	UK£4.76	16
Mar ’24	UK£4.50	UK£5.15 +14.5%	15.6%	UK£7.10	UK£3.90	UK£4.79	17
Feb ’24	UK£4.64	UK£5.02 +8.3%	15.1%	UK£7.10	UK£3.90	UK£5.35	17
Jan ’24	UK£3.97	UK£4.94 +24.4%	17.6%	UK£7.10	UK£3.80	UK£5.63	17
Dec ’23	UK£4.06	UK£4.93 +21.5%	18.1%	UK£7.10	UK£3.56	UK£5.20	17
Nov ’23	UK£3.81	UK£5.14 +34.7%	20.8%	UK£7.10	UK£3.56	UK£4.18	16

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