EPR Properties (EPR) sits in focus today without a single headline driving attention, which can itself be a useful signal when you look at how its experiential focused REIT model has been performing.
See our latest analysis for EPR Properties.
At a share price of US$56.27, EPR Properties has a 90 day share price return of 13.15%, while its 1 year and 5 year total shareholder returns of 15.92% and 74.87% suggest longer term holders have seen stronger gains than recent traders.
If this kind of performance has you thinking about what else is out there, it could be a good moment to broaden your search and uncover 20 top founder-led companies
With EPR Properties trading at US$56.27, sitting close to analyst targets yet flagged with a large intrinsic discount, you have to ask whether the market is overlooking value here or already pricing in future growth.
Price to earnings of 17.2x: Is it justified?
EPR Properties is trading on a P/E of 17.2x, which sits below both its peer average of 24.8x and the North American Specialized REITs industry average of 28.5x.
The P/E ratio compares the current share price with earnings per share and is a way to see how much the market is paying for each dollar of profit. For a REIT like EPR Properties, where cash flows and earnings are central to the investment case, P/E can be a useful shorthand for how the market is weighing its profit profile against similar landlords.
Here, the company is described as trading at good value versus peers and industry, with its 17.2x P/E also sitting well below an estimated fair P/E of 33.8x. That gap highlights a difference between the current market multiple and the fair ratio estimate based on this approach.
By sitting below both the 24.8x peer average and the 28.5x industry average, EPR Properties is priced at a discount to many Specialized REITs on an earnings basis, and the fair ratio work suggests the current multiple is well under where the numbers alone might point. Explore the SWS fair ratio for EPR Properties
Result: Price-to-earnings of 17.2x (UNDERVALUED)
However, you still need to weigh the concentration in experiential and education properties, as well as any shift in tenants’ cash flows or consumer discretionary spending habits.
Find out about the key risks to this EPR Properties narrative.
Another view: Cash flow points to a bigger gap
Alongside the 17.2x P/E, the SWS DCF model points to a very different picture, with an estimated future cash flow value of about $127.50 per share versus the current $56.27 price. That implies a wide gap, but it also raises a question: which set of assumptions do you trust more?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out EPR Properties for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Mixed signals or a clear story taking shape, either way it pays to look under the hood yourself and move before sentiment shifts. Take a closer look at the 4 key rewards and 3 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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