Taylor Wimpey (TW.L)
Consumer · LSE · UK
Fundamentals
Valuation and ratings
Taylor Wimpey trades at £0.83, which is 41% below the £1.18 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 32 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 26.2 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 Taylor Wimpey
Taylor Wimpey plc operates as a homebuilder company in the United Kingdom and Spain. It engages in building and delivering various homes and communities. Taylor Wimpey plc was founded in 1880 and is based in High Wycombe, the United Kingdom.
TW.L passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Taylor Wimpey (TW.L) undervalued?
Against our discounted cash flow estimate of £1.18, TW.L at £0.83 is 41% 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 TW.L's P/E ratio?
TW.L trades at 26.2 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.