Barratt Redrow plc (BTRW) Fair Value & Analysis
Consumer Cyclical · GB · Market cap 4.1B GBX
Fair value as of: Jul 19, 2026
From 25 valuation models · updated 21 days ago
Share price +18.5% over the past month.
Below-average quality, and screening another 15% overvalued on our models.
What matters now
- Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
- Our model range runs from £1.87 (bear) to £3.11 (bull), base £2.49. The closer the price sits to the lower half, the larger the margin of safety.
- Quality 40/100 (below-average quality) with high evidence: the data supports the verdict.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.
How to read this chart
60‑month range £2.19 – £5.28 · fair‑value band £1.87 – £3.11 · the £2.93 price screens above the £2.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.
Analysis
Barratt Redrow plc (BTRW) currently trades at £2.93, while our model-based Fair Value estimate is £2.49, implying the stock looks roughly 15.1% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Barratt Redrow plc generated revenue of £5.9B at a net margin of 3.6%. Revenue grew 15.4% year over year. It earns a return on equity of 2.8%. The balance sheet holds a net cash position of £714M. Fundamentals as of Jul 19, 2026
Our scenario range runs from £1.87 (bear case) to £3.11 (bull case); at £2.93, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. For context, the median of 10 Consumer Cyclical peers we cover trades at 44% fair-value upside, at -15%, BTRW screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 25 models by family
Widest divergence: Asset-Based (£3.77) versus Earnings-Based (£1.17). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 41 · Market factors (momentum, volatility) 39
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Barratt Redrow plc engages in the housebuilding business in the United Kingdom. The company is also involved in the commercial development business, which includes offices, retail, leisure, industrial, and distribution properties under the Wilson Bowden Developments brand; and land development activities.
Full company description
Barratt Redrow plc engages in the housebuilding business in the United Kingdom. The company is also involved in the commercial development business, which includes offices, retail, leisure, industrial, and distribution properties under the Wilson Bowden Developments brand; and land development activities. In addition, it manufactures timber frames under the Oregon Timber Frame brand; and furniture under the BD Living brand. The company offers its homes under the Barratt Homes, David Wilson Homes, Redrow, and Barratt London brands. The company was formerly known as Barratt Developments plc and changed its name Barratt Redrow plc in October 2024. Barratt Redrow plc was founded in 1953 and is headquartered in Coalville, the United Kingdom.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Barratt Redrow plc reported revenue of £5.6B in FY2025 versus £4.8B in FY2021, a compound +3.8%/yr. Reported net income was £186M in FY2025, compounding −27.1%/yr from FY2021.
BTRW screens 15% overvalued. Compare with D.R. Horton, Inc →
Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Barratt Redrow (LSE:BTRW) Stock Gets Fair Value Trim As Analysts Cut Growth Views
- Barratt boosts shareholder returns in face of investor pressure
- Barratt Redrow Q4 Earnings Call Highlights
- Barratt Redrow (LSE:BTRW) Stock Gets Fair Value Trim After Analyst Target Cuts
Peer Group
Residential Construction · 65 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Residential Construction median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| D.R. Horton, Inc DHI | $149.39 | $214.93 | +44% |
| PulteGroup, Inc PHM | $124.75 | $193.56 | +55% |
| Lennar Corporation LEN | $83.89 | $146.58 | +75% |
| NVR, Inc NVR | $6,479 | $7,821 | +21% |
| Toll Brothers, Inc TOL | $150.76 | $225.76 | +50% |
| Taylor Morrison Home Corporation TMHC | $72.13 | $144.47 | +100% |
| Installed Building Products, Inc IBP | $228.65 | $209.51 | -8% |
| Meritage Homes Corporation MTH | $73.83 | $104.26 | +41% |
| Champion Homes, Inc SKY | $82.70 | $75.12 | -9% |
| Cavco Industries, Inc CVCO | $569.16 | $421.10 | -26% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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