Calculating The Intrinsic Value Of EPP N.V. (JSE:EPP)
In this article we are going to estimate the intrinsic value of EPP N.V. ( JSE:EPP ) by taking the expected future cash...
South African (JSE) Real Estate Sector Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies42
- 7D-3.9%
- 3M-3.8%
- 1Y24.1%
- YTD16.4%
Over the last 7 days, the Real Estate industry has dropped 3.9%, driven by a pullback from NEPI Rockcastle of 4.7%. This takes the industry's 12 month performance to a gain of 24%.
Sector Valuation and Performance
Has the South African Real Estate Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Mon, 29 Nov 2021 | R318.0b | R77.3b | R15.8b | 9.4x |
| Wed, 27 Oct 2021 | R320.2b | R75.7b | -R416,576,692.00 | 10x |
| Fri, 24 Sep 2021 | R330.1b | R74.9b | -R3,572,215,768.00 | 13.8x |
| Sun, 22 Aug 2021 | R323.6b | R74.7b | -R22,701,899,978.33 | 14x |
| Fri, 09 Jul 2021 | R314.5b | R74.7b | -R22,701,899,978.33 | 13.8x |
| Thu, 01 Apr 2021 | R285.9b | R74.5b | -R36,392,625,259.72 | 13.3x |
| Sun, 03 Jan 2021 | R270.7b | R76.6b | -R54,941,346,107.51 | 11.6x |
| Wed, 07 Oct 2020 | R222.8b | R81.1b | -R54,454,249,974.52 | 12.9x |
| Tue, 30 Jun 2020 | R259.2b | R83.7b | -R40,981,797,647.33 | 14.2x |
| Fri, 03 Apr 2020 | R221.3b | R86.5b | -R8,124,212,529.78 | 12x |
| Mon, 06 Jan 2020 | R411.8b | R84.1b | R22.8b | 11.4x |
| Thu, 10 Oct 2019 | R422.1b | R85.0b | R28.2b | 11x |
| Wed, 03 Jul 2019 | R445.8b | R84.4b | R29.4b | 11.3x |
| Sat, 06 Apr 2019 | R434.5b | R84.4b | R17.2b | 11x |
| Tue, 08 Jan 2019 | R435.9b | R83.5b | R6.3b | 9x |
PE Ratio
8.5x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 12.0x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Real Estate industry have grown 8.4% per year over the last three years, while revenues have remained mostly flat. This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the South African Real Estate sector?
| REITS | -3.74% | |
| Real Estate | -4.15% | |
Industry PE: Investors are most optimistic about the REITS industry even though it's trading below its 3-year average PE ratio of 12.2x. However analysts are expecting annual earnings growth of 51%, which is lower than the prior year's growth of 168% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Real Estate industry, which is trading below its 3-year average of 13.9x.
Forecasted Growth: Analysts are most optimistic on the REITS industry, expecting annual earnings growth of 51% over the next 5 years. However this is lower than its past earnings growth rate of 168% per year. Meanwhile, the Real Estate industry is expected to see its earnings grow by 50% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| AHA Arrowhead Properties | 0.7%+R786.2m | 47.7% | PB2.2x | |
| SAC SA Real Estate | 1.4%+R74.8m | 55.7% | PB0.6x | |
| OCT Octodec Investments | 3.2%+R69.2m | 24.4% | PB0.4x | |
| ILU Indluplace Properties | 4.7%+R50.5m | -2.3% | PB0.5x | |
| DIA Dipula Income Fund | 0.8%+R37.0m | 40.7% | PB0.8x |
