GMRE
Global Medical REIT Inc.
$35.74
Real Estate Investment Trust
85%
P/FFO × Healthcare REIT Multiple
Strong
·
Conviction
Undervalued
Trading 46.6% below fair value
You pay
$35.74
Bear
$52.02
Fair
$66.88
Bull
$81.74
Bear
$52.02
+45.5%
$3.43 FFO × 15x
Fair
$66.88
+87.1%
$3.43 FFO × 19x
Bull
$81.74
+128.7%
$3.43 FFO × 24x
Adjust Assumptions
19.5x
$
Key Value Driver
FFO/share ($3.43) × healthcare P/FFO multiple
Implied Market Multiple
10.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (22 analysts)
$20.92
Divergence from AlphaVal
220%
Summary
At $3.43 FFO/share with a 19x healthcare REIT multiple, the base-case value is $66.88 per share. Dividend yield: 4.2%.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Wall Street's average price target is $20.92 (from 22 analysts). Our estimate is 220% above the consensus -- consider that gap carefully.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify