UDR, Inc. logo UDR - UDR, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 18
HOLD 17
SELL 3
STRONG
SELL
0
| PRICE TARGET: $41.60 DETAILS
HIGH: $46.00
LOW: $38.00
MEDIAN: $41.00
CONSENSUS: $41.60
UPSIDE: 22.91%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Real Estate Investment Trust 85% confidence

Primary model: P/FFO × Residential REIT Multiple

Valuation Signal Undervalued Strong
Trading 45.2% below fair value
Current Price $33.84
Bear Case $52.07 53.9% upside ($52.07 - $33.84) / $33.84 = 53.9% $3.29 FFO × 21x
Fair Value $61.79 82.6% upside ($61.79 - $33.84) / $33.84 = 82.6% $3.29 FFO × 25x
Bull Case $71.51 111.3% upside ($71.51 - $33.84) / $33.84 = 111.3% $3.29 FFO × 29x

Adjust Assumptions

24.7x
3.29$

Key Value Driver

FFO/share ($3.29) × residential P/FFO multiple

Implied Market Multiple 10.3x

Plain-Language Summary

At $3.29 FFO/share with a 25x residential REIT multiple, the base-case value is $61.79 per share. Dividend yield: 2.6%. DDM cross-check: $16.21.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (38 analysts) $41.60
Analyst Range $38.00 – $46.00
Divergence from AlphaVal 49%

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.
ℹ Dividend-based valuation: $16.21 (74% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
ℹ Wall Street's average price target is $41.60 (from 38 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