Is PurpleBricks valued too high?

April 11, 2016
Purple Bricks Logo

PurpleBricks a new generation “online estate Agent” made headlines in December last year when they started trading on the London AIM (Alternative Investment Market) at a market capitalisation of £240.3 million.

The share price as of today puts a value on the company of around £400million, to put that into perspective Foxtons have a market cap of around £450million, surely that makes PurpleBricks valuation a bit on the top side in anyones book, especially when they are not even making a profit, quite the reverse they are still eating cash with such a high advertsing budget.

In a report out from the Motley Fool last week they mention that many investors question whether a correction is now on the cards, furthermore, with the outlook for the UK property market being rather uncertain, the lack of a margin of safety for new investors could lead to sub-optimal investment returns over the medium-to-long term.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Clarity on energy efficiency rules for commercial property needed

Propertymark has written to Martin McCluskey MP, Minister for Energy Consumers at the Department for Energy Security and Net Zero, urging the UK Government to provide urgent clarity on the future of Minimum Energy Efficiency Standards (MEES) for non-domestic property. The letter follows the publication of the UK Government’s Warm Homes Plan, which confirmed that…
Read More →
Breaking News

English Housing Survey 2024 to 2025

English Housing Survey 2024 to 2025: headline findings on housing quality and energy efficiency The latest findings from the English Housing Survey on housing quality and energy efficiency. This is the second release of data from the 2024-25 survey. This report will be followed by a series of more detailed topic reports in the spring…
Read More →
Breaking News

Propertymark responds to latest HMRC property transactions report

Nathan Emerson, CEO at Propertymark, comments: “Based on December 2025’s figures, it is encouraging to see that property transactions remained stable following the Autumn Budget. At a time when many households were concerned about rising living costs, this stability suggests that the Budget provided enough clarity for people to continue progressing with plans to buy…
Read More →
Breaking News

Mortgage activity dips in December

Property industry reaction to the latest mortgage approval data from the Bank of England. The latest figures show that: – Mortgage approvals on house purchases for December sat at 61,013 down (-4.8%) from 64,072 in November. Approvals are down (-8.4%) when compared to the 66,634 seen in December 2024. This decline was expected due to…
Read More →
Breaking News

£19.9bn of PRS refurbishment required

£19.9bn of refurbishment investment required to bring England’s private rented homes up to EPC C by 2030 Jonathan Samuels, CEO of Octane Capital, believes that despite the Government extending the deadline for all private rental stock to meet an EPC C rating from 2028 to 2030, refurbishment finance will remain key in helping landlords meet…
Read More →
Home and Living

10 budget patio ideas for beginners in landscaping

Creating an inviting outdoor space doesn’t have to break the bank. With a bit of creativity and some elbow grease, you can transform your backyard into a relaxing retreat. Whether you’re looking to build a brand-new area or revamp an existing one, these budget-friendly patio ideas will inspire you to create a stylish and functional…
Read More →