We’ve recently updated our valuation analysis.

Rural Funds Group Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RFF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue16.8x
Enterprise Value/EBITDA25x
PEG Ratio-0.1x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.8x
ARF Arena REIT
4.1x-29.8%AU$1.4b
CQE Charter Hall Social Infrastructure REIT
3.4x-25.6%AU$1.2b
HPI Hotel Property Investments
2.9x-75.2%AU$605.3m
NSR National Storage REIT
108.9x16.7%AU$3.0b
RFF Rural Funds Group
4.7x-41.4%AU$963.0m

Price-To-Earnings vs Peers: RFF is good value based on its Price-To-Earnings Ratio (4.7x) compared to the peer average (29.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-5.2%
n/an/an/a

Price-To-Earnings vs Industry: RFF is good value based on its Price-To-Earnings Ratio (4.7x) compared to the Australian REITs industry average (6.9x)


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 Ratio4.7x
Fair PE Ratio4.5x

Price-To-Earnings vs Fair Ratio: RFF is expensive based on its Price-To-Earnings Ratio (4.7x) compared to the estimated Fair Price-To-Earnings Ratio (4.5x).


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$2.51) is trading below our estimate of fair value (A$3.33)

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


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$2.54
AU$2.68
+5.3%
5.9%AU$2.79AU$2.36n/a5
Nov ’23AU$2.56
AU$2.68
+4.5%
5.9%AU$2.79AU$2.36n/a5
Oct ’23AU$2.29
AU$2.68
+16.8%
5.9%AU$2.79AU$2.36n/a5
Sep ’23AU$2.60
AU$2.66
+2.5%
6.2%AU$2.85AU$2.36n/a5
Aug ’23AU$2.74
AU$2.77
+1.1%
3.8%AU$2.91AU$2.62n/a4
Jul ’23AU$2.49
AU$2.77
+11.2%
3.8%AU$2.91AU$2.62n/a4
Jun ’23AU$3.07
AU$2.99
-2.5%
6.3%AU$3.31AU$2.80n/a4
May ’23AU$3.05
AU$2.99
-1.8%
6.3%AU$3.31AU$2.80n/a4
Apr ’23AU$2.89
AU$2.99
+3.6%
6.3%AU$3.31AU$2.80n/a4
Mar ’23AU$2.71
AU$2.99
+10.5%
6.4%AU$3.31AU$2.80n/a4
Feb ’23AU$2.94
AU$2.89
-1.9%
5.3%AU$3.15AU$2.78n/a4
Jan ’23AU$3.17
AU$2.89
-9.0%
5.3%AU$3.15AU$2.78n/a4
Dec ’22AU$2.92
AU$2.89
-1.2%
5.3%AU$3.15AU$2.78n/a4
Nov ’22AU$2.78
AU$2.80
+0.9%
5.9%AU$3.08AU$2.65AU$2.564
Oct ’22AU$2.65
AU$2.80
+5.8%
5.9%AU$3.08AU$2.65AU$2.294
Sep ’22AU$2.70
AU$2.80
+3.9%
5.9%AU$3.08AU$2.65AU$2.604
Aug ’22AU$2.56
AU$2.68
+4.7%
7.6%AU$3.02AU$2.50AU$2.744
Jul ’22AU$2.64
AU$2.57
-2.6%
5.6%AU$2.81AU$2.43AU$2.494
Jun ’22AU$2.48
AU$2.57
+3.7%
5.6%AU$2.81AU$2.43AU$3.074
May ’22AU$2.43
AU$2.57
+5.8%
5.6%AU$2.81AU$2.43AU$3.054
Apr ’22AU$2.33
AU$2.57
+10.4%
5.6%AU$2.81AU$2.43AU$2.894
Mar ’22AU$2.39
AU$2.57
+7.6%
5.6%AU$2.81AU$2.43AU$2.714
Feb ’22AU$2.46
AU$2.57
+4.3%
9.2%AU$2.97AU$2.37AU$2.944
Jan ’22AU$2.58
AU$2.55
-1.3%
9.8%AU$2.97AU$2.35AU$3.174
Dec ’21AU$2.61
AU$2.48
-5.0%
5.6%AU$2.70AU$2.35AU$2.924
Nov ’21AU$2.40
AU$2.48
+3.3%
5.6%AU$2.70AU$2.35AU$2.784

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


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