American Healthcare REIT, Inc. logo AHR - American Healthcare REIT, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 10
HOLD 1
SELL 0
STRONG
SELL
0
| PRICE TARGET: $57.33 DETAILS
HIGH: $60.00
LOW: $55.00
MEDIAN: $57.00
CONSENSUS: $57.33
UPSIDE: 14.23%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Real Estate Investment Trust 85% confidence

Primary model: P/FFO × Healthcare REIT Multiple

Valuation Signal Overvalued Strong
Trading 50.1% above fair value
Current Price $50.19
Bear Case $26.50 47.2% downside ($26.50 - $50.19) / $50.19 = -47.2% $1.34 FFO × 18x
Fair Value $33.44 33.4% downside ($33.44 - $50.19) / $50.19 = -33.4% $1.34 FFO × 23x
Bull Case $40.37 19.6% downside ($40.37 - $50.19) / $50.19 = -19.6% $1.34 FFO × 29x

Adjust Assumptions

23.4x
1.34$

Key Value Driver

FFO/share ($1.34) × healthcare P/FFO multiple

Implied Market Multiple 37.6x

Plain-Language Summary

Our base-case estimate uses P/FFO × Healthcare REIT Multiple. We then blend that result with the average analyst price target of $57.33 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $33.44 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.
The 2.0% yield is low for a real estate company — investors are paying up because they expect above-average growth.
Dividend-based valuation: $18.64 (32% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $57.33 (from 11 analysts). Our estimate is 52% below 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