TW.:GBR – Market expectations are for TW. to see Uniform ROA decline from recent highs, driven by uncertainty surrounding Brexit and margin declines
April 23, 2018
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- Taylor Wimpey plc. (TW.:GBR)is currently trading below recent average valuations relative to UAFRS-based (Uniform) Earnings, with a 9.1x Uniform P/E. At these levels, the market is expecting Uniform ROA to decline from 20% in 2017 to 9% through 2022, representing levels not seen since 2012
- Specifically, the market appears to expect the firm to continue to see declining average prices in their London market, driven by Brexit uncertainty, leading to a reversal in recent margin improvements. Additionally, the market appears to lack confidence in the company’s ability to continue to see growth in their Spanish operations
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