OUT
Outfront Media Inc.
$32.48
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 29.2% below fair value
You pay
$32.48
Bear
$37.37
Fair
$45.88
Bull
$54.37
Bear
$37.37
+15.1%
$1.76 FFO × 22x
Fair
$45.88
+41.2%
$1.76 FFO × 27x
Bull
$54.37
+67.4%
$1.76 FFO × 32x
Key Value Driver
FFO/share ($1.76) × specialty P/FFO multiple
Implied Market Multiple
18.4x
Summary
Our base-case estimate uses P/FFO × Specialty REIT Multiple. We then blend that result with the average analyst price target of $37.50 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $45.88 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 $37.50 (from 13 analysts). Our estimate is 28% 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