UDR, Inc. logo UDR - UDR, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 18
HOLD 17
SELL 3
STRONG
SELL
0
| PRICE TARGET: $42.13 DETAILS
HIGH: $46.00
LOW: $38.00
MEDIAN: $41.00
CONSENSUS: $42.13
UPSIDE: 11.87%
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 32.6% below fair value
Current Price $37.66
Bear Case $47.10 25.1% upside ($47.10 - $37.66) / $37.66 = 25.1% $3.29 FFO × 21x
Fair Value $55.89 48.4% upside ($55.89 - $37.66) / $37.66 = 48.4% $3.29 FFO × 25x
Bull Case $64.68 71.8% upside ($64.68 - $37.66) / $37.66 = 71.8% $3.29 FFO × 29x

Adjust Assumptions

24.7x
3.29$

Key Value Driver

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

Implied Market Multiple 11.4x

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 $42.13 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $55.89 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 (74% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $42.13 (from 38 analysts). Our estimate is 47% 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