UDR, Inc. logo UDR - UDR, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 18
HOLD 17
SELL 3
STRONG
SELL
0
| PRICE TARGET: $39.50 DETAILS
HIGH: $42.00
LOW: $35.00
MEDIAN: $40.00
CONSENSUS: $39.50
UPSIDE: 1.02%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Real Estate Investment Trust 85% confidence

Primary model: P/FFO × Residential REIT Multiple

Valuation Signal Undervalued Moderate
Trading 28.5% below fair value
Current Price $39.10
Bear Case $46.06 17.8% upside ($46.06 - $39.10) / $39.10 = 17.8% $3.26 FFO × 21x
Fair Value $54.66 39.8% upside ($54.66 - $39.10) / $39.10 = 39.8% $3.26 FFO × 25x
Bull Case $63.25 61.8% upside ($63.25 - $39.10) / $39.10 = 61.8% $3.26 FFO × 29x

Adjust Assumptions

24.7x
3.26$

Key Value Driver

FFO/share ($3.26) × residential P/FFO multiple

Implied Market Multiple 12.0x

Plain-Language Summary

Our base-case estimate uses P/FFO × Residential REIT Multiple. We then blend that result with the average analyst price target of $39.50 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $54.66 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: $16.21 (73% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $39.50 (from 38 analysts). Our estimate is 55% 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