Persimmon's Shares Appear Materially Undervalued as Fear and Uncertainty Grip U.K. Housing Market

With the U.K. housing market having slowed rapidly in recent months, we think investors stand to profit by acting in a contrarian fashion to purchase shares in Persimmon. The no-moat U.K. homebuilder updated the market on its late 2022 performance, effectively announcing its preliminary full-year 2022 results in the process. With our long-term expectations for Persimmon intact following the trading update, we make no change to our GBX 2,340 fair value estimate. Persimmon shares continue to screen as compelling, trading at a 40% discount to our valuation.