Redrow plc

LSE:RDW Stock Report

Market Cap: UK£2.5b

This company listing is no longer active

This company may still be operating, however this listing is no longer active.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.

Discounted Cash Flow
Simply Wall St
UK£12.25
Fair Value
35.7% undervalued intrinsic discount
11
Number of Analysts

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 Average21.6x
BWY Bellway
19.8x21.7%UK£2.6b
BTRW Barratt Redrow
50.4x36.3%UK£5.8b
BKG Berkeley Group Holdings
9.5x-5.6%UK£3.6b
VTY Vistry Group
6.7x8.1%UK£1.7b
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?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RDW 12.2xIndustry Avg. 13.5xNo. of Companies13PE0816243240+
3 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
Jan ’26n/a
UK£7.18
0%
6.6%UK£7.68UK£5.90n/a11
Dec ’25n/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
Analyst Price Target
Consensus Narrative from 11 Analysts
UK£7.18
Fair Value
9.7% overvalued intrinsic discount
11
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/08/21 05:10
End of Day Share Price 2024/08/21 00:00
Earnings2023/12/31
Annual Earnings2023/07/02

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Redrow plc is covered by 27 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kate MoyArbuthnot Securities Limited
Aynsley LamminAuerbach Grayson
Jonathan BellBarclays