Gladstone Commercial Corporation logo GOOD - Gladstone Commercial Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 9
HOLD 5
SELL 0
STRONG
SELL
0
| PRICE TARGET: $14.00 DETAILS
HIGH: $15.00
LOW: $13.00
MEDIAN: $14.00
CONSENSUS: $14.00
UPSIDE: 10.41%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Real Estate Investment Trust 85% confidence

Primary model: P/FFO × Diversified REIT Multiple

Valuation Signal Undervalued Strong
Trading 48.1% below fair value
Current Price $12.68
Bear Case $20.16 59.0% upside ($20.16 - $12.68) / $12.68 = 59.0% $1.60 FFO × 18x
Fair Value $24.42 92.6% upside ($24.42 - $12.68) / $12.68 = 92.6% $1.60 FFO × 22x
Bull Case $28.66 126.0% upside ($28.66 - $12.68) / $12.68 = 126.0% $1.60 FFO × 26x

Adjust Assumptions

22.1x
1.6$

Key Value Driver

FFO/share ($1.60) × diversified P/FFO multiple

Implied Market Multiple 7.9x

Plain-Language Summary

Our base-case estimate uses P/FFO × Diversified REIT Multiple. We then blend that result with the average analyst price target of $14.00 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $24.42 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: $7.45 (72% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $14.00 (from 14 analysts). Our estimate is 93% 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