The Berkeley Group Holdings (BKG.L)
Consumer · LSE · UK
Fundamentals
Valuation and ratings
The Berkeley Group Holdings trades at £34.14, close to the £39.18 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 38 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 10.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About The Berkeley Group Holdings
The Berkeley Group Holdings plc, together with its subsidiaries, builds homes and neighbourhoods in the United Kingdom. The company engages in the residential-led and mixed-use property development and ancillary activities; and land selling activities. It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brands. The Berkeley Group Holdings plc was founded in 1976 and is headquartered in Cobham, the United Kingdom.
BKG.L passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is The Berkeley Group Holdings (BKG.L) undervalued?
Against our discounted cash flow estimate of £39.18, BKG.L at £34.14 is 15% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is BKG.L's P/E ratio?
BKG.L trades at 10.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.