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How to buy Barratt Developments (BDEV) shares

Learn how to easily invest in Barratt Developments shares.

Barratt Developments PLC (BDEV) is a leading residential construction business based in the UK. It opened the day at 325p after a previous close of 323.4p. During the day the price has varied from a low of 324.1p to a high of 343.05p. The latest price was 342.2p (25 minute delay). Barratt Developments is listed on the London Stock Exchange (LSE) and employs 6,517 staff. All prices are listed in pence sterling.

How to buy shares in Barratt Developments

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – BDEV – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

How has Coronavirus impacted Barratt Developments's stock price?

Since the stock market crash in March caused by coronavirus, Barratt Developments's stock price has had significant negative movement.

Its last market close was 342.2p, which is 60.36% down on its pre-crash value of 863.2p and 2.10% down on the lowest point reached during the March crash when the stocks fell as low as 349.4p.

If you had bought £1,000 worth of Barratt Developments stocks at the start of February 2020, those stocks would have been worth £478.89 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £422.04.

Barratt Developments shares at a glance

Information last updated 2022-09-30.
Open325.00p
High343.05p
Low324.10p
Close342.20p
Previous close323.40p
Change 18.80p
Change % 5.8132%
Volume 7,370,207
Information last updated 2022-09-24.
52-week range393.05p - 748.98p
50-day moving average 455.25p
200-day moving average 535.75p
Wall St. target price650.00p
PE ratio 8.12
Dividend yield 0.369p (8.96%)
Earnings per share (TTM) 0.50p

Barratt Developments stock price (London Stock Exchange (LSE):BDEV)

Use our graph to track the performance of BDEV stocks over time.

Barratt Developments price performance over time

Historical closes compared with the close of 342.2p from 2022-09-30

1 week (2022-09-23) -15.71%
1 month (2022-09-01) -17.58%
3 months (2022-07-01) -25.51%
6 months (2022-04-01) -33.96%
1 year (2021-10-01) -47.68%
2 years (2020-10-01) -30.09%
3 years (2019-10-01) 646.4
5 years (2017-09-29) 614.5

Is Barratt Developments under- or over-valued?

Valuing Barratt Developments stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Barratt Developments's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Barratt Developments's P/E ratio

Barratt Developments's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 8x. In other words, Barratt Developments shares trade at around 8x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Barratt Developments's PEG ratio

Barratt Developments's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.6777. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Barratt Developments's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Barratt Developments's EBITDA

Barratt Developments's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £1.1 billion.

The EBITDA is a measure of a Barratt Developments's overall financial performance and is widely used to measure a its profitability.

Barratt Developments financials

Revenue TTM £5.3 billion
Operating margin TTM 20.01%
Gross profit TTM £1.3 billion
Return on assets TTM 8.4%
Return on equity TTM 9.3%
Profit margin 9.78%
Book value 5.54p
Market capitalisation £4.1 billion

TTM: trailing 12 months

Barratt Developments's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Barratt Developments.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Barratt Developments's total ESG risk score

Total ESG risk: 10.83

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Barratt Developments's overall score of 10.83 (as at 01/01/2019) is excellent – landing it in it in the 2nd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Barratt Developments is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Barratt Developments's environmental score

Environmental score: 4.6/100

Barratt Developments's environmental score of 4.6 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Barratt Developments is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Barratt Developments's social score

Social score: 3.64/100

Barratt Developments's social score of 3.64 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Barratt Developments is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Barratt Developments's governance score

Governance score: 2.6/100

Barratt Developments's governance score puts it squarely in the 2nd percentile of companies rated in the same sector. That could suggest that Barratt Developments is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Barratt Developments's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Barratt Developments scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Barratt Developments has, for the most part, managed to keep its nose clean.

Barratt Developments share dividends

Dividend payout ratio: 117.6% of net profits

Recently Barratt Developments has paid out, on average, around 117.6% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 8.96% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Barratt Developments shareholders could enjoy a 8.96% return on their shares, in the form of dividend payments. In Barratt Developments's case, that would currently equate to about 0.369p per share.

Barratt Developments's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 29 September 2022 (the "ex-dividend date").

Have Barratt Developments's shares ever split?

Barratt Developments's shares were split on a 2:1 basis on 6 June 1983. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Barratt Developments shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Barratt Developments shares which in turn could have impacted Barratt Developments's share price.

Barratt Developments share price volatility

Over the last 12 months, Barratt Developments's shares have ranged in value from as little as 393.05p up to 748.9802p. A popular way to gauge a stock's volatility is its "beta".

BDEV.LSE volatility(beta: 1.54)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Barratt Developments's is 1.5385. This would suggest that Barratt Developments's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Barratt Developments overview

Barratt Developments plc engages in the housebuilding and commercial development businesses in Great Britain. It acquires and develops land; plans, designs, and constructs homes, apartments, penthouses, and communities; and retail, leisure, office, industrial, and mixed-use properties. The company offers homes under the Barratt Homes, David Wilson Homes, and Barratt London brands. It is also involved in the commercial development activities under the Wilson Bowden Developments brand name. The company was incorporated in 1958 and is headquartered in Coalville, the United Kingdom. .

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice before making any trades.

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