RE: Newbie to house builders31 Aug 2022 22:36
There are lots of ways to look at Bellway's valuation but two simple examples I think that show the extreme undervaluation relative to assets - 1) If Bellway hadn't purchased any land in FY 21-22 (£1.3B) or FY 20-21 (£1.07B) and instead kept it all in cash, they would now have enough cash (when added to net cash of £245m gives £2.6B) to buy back all their shares in the market. 2) They paid £68k per plot in the last year which if applied to the rest of their landbank would give a value of £5-6B or so. Current Market Cap £2.6B.