UDR - UDR, Inc.
Price:
--
--
|
CONSENSUS:
Buy
DETAILS
|
PRICE TARGET:
$39.50
DETAILS
HIGH:
$42.00
LOW:
$35.00
MEDIAN:
$40.00
CONSENSUS:
$39.50
UPSIDE:
1.02%
AlphaVal
Deterministic, archetype-aware fair value
Real Estate Investment Trust
85% confidence
Primary model: P/FFO × Residential REIT Multiple
Adjust Assumptions
24.7x
$
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