LAMR
Lamar Advertising Company
$153.10
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Strong
·
Conviction
Undervalued
Trading 49.6% below fair value
You pay
$153.10
Bear
$251.32
Fair
$303.54
Bull
$355.76
Bear
$251.32
+64.2%
$9.00 FFO × 29x
Fair
$303.54
+98.3%
$9.00 FFO × 35x
Bull
$355.76
+132.4%
$9.00 FFO × 42x
Key Value Driver
FFO/share ($9.00) × specialty P/FFO multiple
Implied Market Multiple
17.0x
Summary
Our base-case estimate uses P/FFO × Specialty REIT Multiple. We then blend that result with the average analyst price target of $155.00 from 20 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $303.54 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 $155.00 (from 20 analysts). Our estimate is 128% 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