<div id="readability-page-1"><div><ul> <li>Wondering whether Barratt Redrow is priced attractively or if the risk is already baked into the share price? This article breaks down what the current valuation is really suggesting.</li> <li>The stock recently closed at £2.645, with returns of 2.4% over 7 days and 3.3% over 30 days, set against a much weaker picture over longer periods, including a 30.2% decline year to date and a 38.0% decline over 1 year.</li> <li>Recent coverage has focused on Barratt Redrow as part of the UK consumer durables sector, highlighting how housebuilders are reacting to changing conditions and ongoing consolidation in the industry. This has framed the share price moves within broader questions about balance sheets, land banks and the outlook for large listed builders.</li> <li>Simply Wall St assigns Barratt Redrow a value score of 3 out of 6, reflecting areas that screens flag as potentially undervalued alongside checks that look more fully priced. The sections that follow will compare different valuation approaches while keeping an eye on an even more useful way to think about value that comes at the end of the article.</li> </ul> <p>Find out why Barratt Redrow's -38.0% return over the last year is lagging behind its peers.</p> <h3>Approach 1: Barratt Redrow Discounted Cash Flow (DCF) Analysis</h3> <p>A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting the cash it could generate in future years and then discounting those cash flows back to today using a required rate of return.</p> <p>For Barratt Redrow, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flows in £. The latest twelve month free cash flow is £95.63m. Analyst inputs cover the next few years, with free cash flow projections out to 2035 extended by Simply Wall St beyond the initial analyst window. For example, projected free cash flow in 2029 is £474m, with intermediate years between 2026 and 2035 set out in the model as part of a ten year path.</p> <p>Discounting these projected cash flows results in an estimated intrinsic value of £9.26 per share. At the recent share price of £2.645, the DCF output suggests the stock is 71.4% undervalued based on these assumptions and inputs.</p> <p><strong>Result: UNDERVALUED</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests Barratt Redrow is undervalued by 71.4%. Track this in your watchlist or portfolio, or discover 9 more high quality undervalued stocks.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8ef6858c-400d-41d7-8652-c7f7700f2f3e/chart/dcf/query-ZGF0ZT0yMDI2LTA0LTIy?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8ef6858c-400d-41d7-8652-c7f7700f2f3e/chart/dcf/query-ZGF0ZT0yMDI2LTA0LTIy"/><figcaption>BTRW Discounted Cash Flow as at Apr 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Barratt Redrow.</p> <h3>Approach 2: Barratt Redrow Price vs Earnings</h3> <p>For a profitable company, the P/E ratio is a useful shorthand for how much investors are paying for each pound of earnings. This makes it a practical way to compare valuation across similar businesses.</p> <p>What counts as a normal or fair P/E usually reflects how the market views a company’s growth potential and risks. Higher expected growth and lower perceived risk often support a higher P/E, while slower growth and higher risk tend to align with a lower multiple.</p> <p>Barratt Redrow currently trades on a P/E of 17.2x. That sits close to the Consumer Durables industry average of 16.3x, and slightly above the peer average of 16.5x. Simply Wall St’s Fair Ratio for Barratt Redrow is 20.2x, which is its proprietary view of what the P/E might be given factors such as earnings growth, industry, profit margin, market cap and identified risks.</p> <p>This Fair Ratio can be more informative than a simple comparison with peers or the industry because it attempts to align the multiple with the company’s specific profile instead of broad group averages. Set against the current P/E of 17.2x, the Fair Ratio of 20.2x suggests the shares are trading below that modelled level.</p> <p><strong>Result: UNDERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8ef6858c-400d-41d7-8652-c7f7700f2f3e/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA0LTIy?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8ef6858c-400d-41d7-8652-c7f7700f2f3e/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA0LTIy"/><figcaption>LSE:BTRW P/E Ratio as at Apr 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 6 top founder-led companies.</p> <h2>Upgrade Your Decision Making: Choose your Barratt Redrow Narrative</h2> <p>Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St let you attach a clear story about Barratt Redrow to specific forecasts for revenue, earnings and margins, connect that story to a Fair Value, then compare it with the current price. The system updates automatically when fresh news or earnings appear. For example, one investor might align with a more optimistic community Narrative that points to a Fair Value near £6.0 based on higher growth and margin expectations. Another might prefer a more cautious Narrative closer to £4.0 that leans on lower assumptions and a different view of risks. This gives you a simple side by side framework to decide whether the present market price fits your own outlook.</p> <p>Do you think there's more to the story for Barratt Redrow? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8ef6858c-400d-41d7-8652-c7f7700f2f3e/chart/quote-price/query-ZGF0ZT0yMDI2LTA0LTIy?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8ef6858c-400d-41d7-8652-c7f7700f2f3e/chart/quote-price/query-ZGF0ZT0yMDI2LTA0LTIy"/><figcaption>LSE:BTRW 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if Barratt Redrow might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

BTDPY

<p>Barratt Redrow's share price has seen a significant decline of 38.0% over the past year, closing at £2.645. Despite recent returns of 2.4% over 7 days and 3.3% over 30 days, analysts suggest the stock may be undervalued. A Discounted Cash Flow analysis estimates an intrinsic value of £9.26 per share, indicating a 71.4% undervaluation. The current P/E ratio of 17.2x is slightly above industry averages, with a Fair Ratio of 20.2x suggesting further undervaluation. Investors are encouraged to consider different narratives for valuation assessments.</p>

Is It Time To Reassess Barratt Redrow (LSE:BTRW) After Its Sharp Share Price Slide?