Rural Funds Group

ASX:RFF Stock Report

Market Cap: AU$732.7m

Rural Funds Group Valuation

Is RFF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RFF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RFF (A$1.88) is trading below our estimate of fair value (A$2.8)

Significantly Below Fair Value: RFF is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RFF?

Key metric: As RFF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RFF. This is calculated by dividing RFF's market cap by their current earnings.
What is RFF's PE Ratio?
PE Ratio8.8x
EarningsAU$83.25m
Market CapAU$732.68m

Price to Earnings Ratio vs Peers

How does RFF's PE Ratio compare to its peers?

The above table shows the PE ratio for RFF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.9x
ARF Arena REIT
27.6x6.7%AU$1.6b
ASK Abacus Storage King
11.3x-1.7%AU$1.6b
HPI Hotel Property Investments
20x4.8%AU$720.4m
HCW HealthCo Healthcare and Wellness REIT
88.7xn/aAU$612.0m
RFF Rural Funds Group
8.8x-7.2%AU$732.7m

Price-To-Earnings vs Peers: RFF is good value based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (36.9x).

Price to Earnings Ratio vs Industry

How does RFF's PE Ratio compare vs other companies in the Global Specialized REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RFF 8.8xIndustry Avg. 19.2xNo. of Companies8PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RFF is good value based on its Price-To-Earnings Ratio (8.8x) compared to the Global Specialized REITs industry average (19.2x).

Price to Earnings Ratio vs Fair Ratio

What is RFF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RFF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.8x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: RFF is good value based on its Price-To-Earnings Ratio (8.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RFF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.88
AU$2.22
+18.2%
9.9%AU$2.50AU$1.91n/a5
Nov ’25AU$1.86
AU$2.22
+19.5%
9.9%AU$2.50AU$1.91n/a5
Oct ’25AU$1.97
AU$2.17
+9.9%
11.0%AU$2.50AU$1.88n/a6
Sep ’25AU$2.05
AU$2.15
+5.0%
11.4%AU$2.50AU$1.88n/a6
Aug ’25AU$2.13
AU$2.24
+5.0%
9.5%AU$2.49AU$1.88n/a6
Jul ’25AU$2.02
AU$2.22
+9.9%
9.9%AU$2.49AU$1.88n/a6
Jun ’25AU$2.00
AU$2.22
+11.0%
9.9%AU$2.49AU$1.88n/a6
May ’25AU$2.01
AU$2.22
+10.5%
9.9%AU$2.49AU$1.88n/a6
Apr ’25AU$2.09
AU$2.22
+6.2%
9.9%AU$2.49AU$1.88n/a6
Mar ’25AU$2.07
AU$2.29
+10.5%
7.6%AU$2.49AU$2.06n/a5
Feb ’25AU$2.04
AU$2.26
+11.0%
8.2%AU$2.43AU$1.97n/a5
Jan ’25AU$2.12
AU$2.26
+6.8%
8.2%AU$2.43AU$1.97n/a5
Dec ’24AU$1.90
AU$2.19
+15.3%
8.9%AU$2.43AU$1.97n/a5
Nov ’24AU$1.79
AU$2.19
+22.1%
8.9%AU$2.43AU$1.97AU$1.865
Oct ’24AU$1.77
AU$2.16
+22.4%
8.1%AU$2.45AU$1.97AU$1.975
Sep ’24AU$2.11
AU$2.16
+2.4%
8.1%AU$2.45AU$1.97AU$2.055
Aug ’24AU$2.00
AU$2.20
+10.2%
14.4%AU$2.79AU$1.86AU$2.135
Jul ’24AU$1.77
AU$2.28
+28.9%
15.0%AU$2.79AU$1.86AU$2.025
Jun ’24AU$1.80
AU$2.37
+31.8%
15.5%AU$2.79AU$1.86AU$2.005
May ’24AU$1.98
AU$2.52
+27.4%
9.9%AU$2.79AU$2.12AU$2.014
Apr ’24AU$2.00
AU$2.52
+26.1%
9.9%AU$2.79AU$2.12AU$2.094
Mar ’24AU$2.19
AU$2.49
+13.7%
9.3%AU$2.79AU$2.12AU$2.075
Feb ’24AU$2.51
AU$2.59
+3.2%
7.9%AU$2.79AU$2.32AU$2.045
Jan ’24AU$2.41
AU$2.59
+7.5%
7.9%AU$2.79AU$2.32AU$2.125
Dec ’23AU$2.57
AU$2.59
+0.8%
7.9%AU$2.79AU$2.32AU$1.905
Nov ’23AU$2.56
AU$2.68
+4.5%
5.9%AU$2.79AU$2.36AU$1.795

Analyst Forecast: Target price is less than 20% higher than the current share price.

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