City Confidential

2 April 2026

It is nor surprising that the market has given up some of yesterday’s gains given the continuing uncertainty surrounding world markets and the whole situation in the Middle East.  One interesting factor though is the disparity in company valuations with some companies looking very fully valued, such as Rolls Royce and others looking very cheap.  Shares in Rolls Royce (1171p) are trading on a prospective p/e ratio for 2026 of around 30x which looks very steep to us despite the progress being made by the company.  On the other hand there are companies such as Barratt Redrow (251p) standing on a prospective p/e ratio of just 9x and yield of 6% with the shares at the lowest point since 2013!