PSTL
Postal Realty Trust, Inc.
$24.22
Real Estate Investment Trust
85%
P/FFO × Diversified REIT Multiple
Mild
·
Conviction
Overvalued
Trading 10.1% above fair value
You pay
$24.22
Bear
$18.25
Fair
$22.00
Bull
$25.76
Bear
$18.25
-24.7%
$1.09 FFO × 18x
Fair
$22.00
-9.1%
$1.09 FFO × 22x
Bull
$25.76
+6.4%
$1.09 FFO × 26x
Key Value Driver
FFO/share ($1.09) × diversified P/FFO multiple
Implied Market Multiple
22.3x
Summary
Our base-case estimate uses P/FFO × Diversified REIT Multiple. We then blend that result with the average analyst price target of $24.50 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $22.00 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: $15.26 (29% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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