Redrow plc

LSE:RDW Stock Report

Market Cap: UK£2.5b

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This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Redrow Valuation

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

Below Fair Value: RDW (£7.88) is trading below our estimate of fair value (£12.25)

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

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RDW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.9x
BWY Bellway
22.9x21.9%UK£3.0b
BTRW Barratt Redrow
53.4x42.7%UK£6.2b
BKG Berkeley Group Holdings
10.9x-4.2%UK£4.4b
VTY Vistry Group
8.5x13.3%UK£2.2b
RDW Redrow
12.2x-0.7%UK£2.5b

Price-To-Earnings vs Peers: RDW 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 RDW's PE Ratio compare vs other companies in the European Consumer Durables Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RDW 12.2xIndustry Avg. 12.6xNo. of Companies11PE0816243240+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RDW is good value based on its Price-To-Earnings Ratio (12.2x) compared to the European Consumer Durables industry average (14.4x).

Price to Earnings Ratio vs Fair Ratio

What is RDW'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.

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

Price-To-Earnings vs Fair Ratio: RDW 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 RDW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£7.18
0%
6.6%UK£7.68UK£5.90n/a11
Nov ’25n/a
UK£7.18
0%
6.6%UK£7.68UK£5.90n/a11
Oct ’25n/a
UK£7.18
0%
6.6%UK£7.68UK£5.90n/a11
Sep ’25n/a
UK£7.18
0%
6.6%UK£7.68UK£5.90n/a11
Aug ’25UK£7.55
UK£7.11
-5.8%
7.2%UK£7.68UK£5.90n/a12
Jul ’25UK£6.73
UK£7.08
+5.1%
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£6.37
UK£7.03
+10.3%
7.6%UK£7.60UK£5.90n/a11
Apr ’25UK£6.66
UK£6.71
+0.8%
14.4%UK£7.56UK£4.10n/a11
Mar ’25UK£6.64
UK£6.65
+0.3%
14.6%UK£7.56UK£4.10n/a11
Feb ’25UK£5.92
UK£6.44
+8.8%
13.2%UK£7.74UK£4.10n/a13
Jan ’25UK£6.16
UK£6.01
-2.3%
13.7%UK£7.50UK£4.10n/a14
Dec ’24UK£5.47
UK£5.95
+8.9%
15.3%UK£8.25UK£4.10n/a14
Nov ’24UK£4.89
UK£5.84
+19.4%
16.7%UK£8.25UK£3.70n/a15
Oct ’24UK£4.95
UK£5.76
+16.3%
16.5%UK£8.25UK£3.70n/a17
Sep ’24UK£4.74
UK£5.60
+18.2%
13.3%UK£6.50UK£3.70n/a16
Aug ’24UK£5.12
UK£5.62
+9.9%
14.1%UK£6.60UK£3.70UK£7.5515
Jul ’24UK£4.41
UK£5.66
+28.3%
12.2%UK£6.60UK£4.40UK£6.7315
Jun ’24UK£4.89
UK£5.81
+18.6%
11.1%UK£6.70UK£4.40UK£7.1214
May ’24UK£5.18
UK£5.68
+9.8%
12.0%UK£6.70UK£4.40UK£6.3714
Apr ’24UK£4.76
UK£5.54
+16.4%
13.0%UK£6.50UK£4.00UK£6.6613
Mar ’24UK£4.92
UK£5.60
+13.8%
13.0%UK£6.50UK£4.00UK£6.6414
Feb ’24UK£5.22
UK£5.45
+4.5%
14.5%UK£6.50UK£3.80UK£5.9214
Jan ’24UK£4.54
UK£5.43
+19.7%
15.0%UK£6.85UK£3.90UK£6.1614
Dec ’23UK£4.69
UK£5.47
+16.7%
12.9%UK£6.85UK£4.66UK£5.4714
Nov ’23UK£4.26
UK£6.10
+43.1%
22.7%UK£8.60UK£4.78UK£4.8913

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

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