PLYM
Plymouth Industrial REIT, Inc.
$21.98
Real Estate Investment Trust
85%
P/FFO × Industrial REIT Multiple
Strong
·
Conviction
Undervalued
Trading 74.2% below fair value
You pay
$21.98
Bear
$69.99
Fair
$85.35
Bull
$100.71
Bear
$69.99
+218.4%
$5.02 FFO × 23x
Fair
$85.35
+288.3%
$5.02 FFO × 29x
Bull
$100.71
+358.2%
$5.02 FFO × 34x
Key Value Driver
FFO/share ($5.02) × industrial P/FFO multiple
Implied Market Multiple
4.4x
Summary
Our base-case estimate uses P/FFO × Industrial REIT Multiple. We then blend that result with the average analyst price target of $21.00 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $85.35 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.
Dividend-based valuation: $20.65 (81% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $21.00 (from 16 analysts). Our estimate is 409% 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