BXP - BXP, Inc.
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$67.00
DETAILS
HIGH:
$80.00
LOW:
$61.00
MEDIAN:
$65.00
CONSENSUS:
$67.00
UPSIDE:
11.13%
AlphaVal
Deterministic, archetype-aware fair value
Real Estate Investment Trust
85% confidence
Primary model: P/FFO × Office REIT Multiple
Adjust Assumptions
13.0x
$
Key Value Driver
FFO/share ($7.42) × office P/FFO multiple
Implied Market Multiple
8.1x
Plain-Language Summary
Our base-case estimate uses P/FFO × Office REIT Multiple. We then blend that result with the average analyst price target of $67.00 from 42 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $79.43 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 yield of 5.1% is unusually high — make sure the company generates enough cash to keep paying it.
Dividend-based valuation: $57.40 (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 $67.00 (from 42 analysts). Our estimate is 27% 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