GMRE
Global Medical REIT Inc.
$35.74
Real Estate Investment Trust
85%
P/FFO × Healthcare REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 35.5% below fair value
You pay
$35.74
Bear
$43.08
Fair
$55.39
Bull
$67.70
Bear
$43.08
+20.5%
$3.43 FFO × 15x
Fair
$55.39
+55.0%
$3.43 FFO × 19x
Bull
$67.70
+89.4%
$3.43 FFO × 24x
Key Value Driver
FFO/share ($3.43) × healthcare P/FFO multiple
Implied Market Multiple
10.4x
Summary
Our base-case estimate uses P/FFO × Healthcare REIT Multiple. We then blend that result with the average analyst price target of $20.92 from 22 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $55.39 per share.
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