DCF Valuation

Barratt Developments plc (BTDPF) DCF Valuation — Is BTDPF undervalued?

The estimated DCF fair value of one Barratt Developments plc (BTDPF) share is $6.09. Compared to the current market price of $3.95, the stock is undervalued by 54.2%.

DCF fair value

$6.09

Market price

$3.95

Upside / downside

+54.2%

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Barratt Developments plc (BTDPF) DCF valuation FAQ

What is the DCF fair value of Barratt Developments plc (BTDPF)?

The discounted-cash-flow model estimates the intrinsic fair value of one Barratt Developments plc (BTDPF) share at $6.09, based on a 10-year projection of its cash flows converging to Damodaran industry averages.

Is Barratt Developments plc (BTDPF) overvalued or undervalued?

Against the current market price of $3.95, the DCF fair value of $6.09 implies BTDPF is undervalued by 54.2%.

How is the BTDPF DCF value calculated?

It is a 10-year discounted-cash-flow estimate built from Barratt Developments plc's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when Barratt Developments plc files a new quarterly or annual report.

How this BTDPF valuation is built

The model projects ten years of Barratt Developments plc's free cash flow to the firm and discounts each year at its own cost of capital. Rather than assuming today's growth and margins persist forever, a moat-scoring step — weighing Barratt Developments plc's ROIC-versus-WACC spread, gross-margin trend, and reinvestment efficiency — decides how many years the business holds its edge before its economics mean-revert toward the Damodaran NYU benchmarks for its industry.

WACC is rebuilt each year from an unlevered-then-relevered beta and the company's evolving capital structure; terminal value uses the Gordon growth model with a reinvestment rate tied to the return earned on new capital (goodwill stripped out to reflect operating efficiency). Every assumption — growth, margins, tax, leverage, convergence timing — is editable, and running the full interactive model adds a 10,000-draw Monte Carlo simulation and WACC-versus-terminal-growth sensitivity heatmaps.

The market price refreshes daily; the DCF fair value updates when Barratt Developments plc files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-06.