Taylor Wimpey Valuation

Q: What is the Fair Price of TWOD.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TWOD.Y ($16.6) is trading below our estimate of [[fair value]] ($27.12)

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

Below Fair Value: TWOD.Y ($16.6) is trading below our estimate of fair value ($27.12)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TWOD.Y?

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

The above table shows the Price to Earnings ratio for TWOD.Y. This is calculated by dividing TWOD.Y's market cap by their current earnings.
What is TWOD.Y's PE Ratio?
PE Ratio	18.8x
Earnings	UK£246.30m
Market Cap	UK£4.63b

TWOD.Y 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	9.8x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does TWOD.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for TWOD.Y 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	17.1x
SKY Champion Homes	39.8x	21.0%	US$5.9b
KBH KB Home	10.2x	7.1%	US$5.8b
TMHC Taylor Morrison Home	9.5x	8.7%	US$7.4b
MTH Meritage Homes	8.7x	1.1%	US$6.7b
TWOD.Y Taylor Wimpey	18.8x	17.0%	US$4.6b

Price-To-Earnings vs Peers: TWOD.Y is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (17.1x).

Price to Earnings Ratio vs Industry

How does TWOD.Y's PE Ratio compare vs other companies in the US Consumer Durables Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: TWOD.Y is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the US Consumer Durables industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

What is TWOD.Y'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.

TWOD.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.8x
Fair PE Ratio	19.9x

Price-To-Earnings vs Fair Ratio: TWOD.Y is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.