RHP
Ryman Hospitality Properties, Inc.
$124.80
Real Estate Investment Trust
85%
P/FFO × Default REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 25.5% below fair value
You pay
$124.80
Bear
$137.95
Fair
$167.51
Bull
$197.08
Bear
$137.95
+10.5%
$8.26 FFO × 18x
Fair
$167.51
+34.2%
$8.26 FFO × 22x
Bull
$197.08
+57.9%
$8.26 FFO × 26x
Key Value Driver
FFO/share ($8.26) × default P/FFO multiple
Implied Market Multiple
15.1x
Summary
Our base-case estimate uses P/FFO × Default REIT Multiple. We then blend that result with the average analyst price target of $122.17 from 19 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $167.51 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 $122.17 (from 19 analysts). Our estimate is 49% 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