Taylor Wimpey Fair Value
TW
The fair market value of TW.L stock is 83.02 GBX. Relative to the market price of 137.55 GBX Taylor Wimpey is overvalued by 39.6%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Taylor Wimpey Valuation
Current TW.L share ticker price is 137.55 GBX.
The fair value level of 83.02 GBX can be considered as an effective entry point for long-term investors to start investing in TW.L stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 40% higher its fair value
Current price is 67% higher its minimum value
Current price is 3% lower its maximum value
Market price:
TW.L stock is overvalued
It means the current price may concern as a Risky Entry Point
Taylor Wimpey PLC Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
20.43
2
Median P/E over 5 years
11.92
3
Minimum P/E over 5 years
6.5
4
Earning per share (last 12 months)
6.97 GBP
Maximum value
1
x
4
=
142.32 GBX
Fair value
2
x
4
=
83.02 GBX
Minimum value
3
x
4
=
45.26 GBX
Taylor Wimpey PLC price metrics
-4.07
Annual return (geometric mean)
37.59
Risk (standard deviation) of returns
β
1.41
Beta (volatility compared to market)