We’ve recently updated our valuation analysis.

Vicinity Centres Valuation

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

[object Object] Score

3/6

Valuation Score 3/6

  • 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 VCX?

Other financial metrics that can be useful for relative valuation.

VCX 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/Revenue11x
Enterprise Value/EBITDA19.1x
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VCX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.9x
SCG Scentre Group
15.7x4.3%AU$15.2b
BWP BWP Trust
5.4x-22.7%AU$2.6b
HDN HomeCo Daily Needs REIT
8.1x-10.1%AU$2.7b
RGN Region Group
6.3x-10.0%AU$3.1b
VCX Vicinity Centres
7.5x-11.5%AU$9.1b

Price-To-Earnings vs Peers: VCX is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (8.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-6.2%
n/an/an/a

Price-To-Earnings vs Industry: VCX is expensive based on its Price-To-Earnings Ratio (7.5x) compared to the Australian REITs industry average (6.9x)


Price to Earnings Ratio vs Fair Ratio

What is VCX'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.

VCX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ratio8.2x

Price-To-Earnings vs Fair Ratio: VCX is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (8.2x).


Share Price vs Fair Value

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

Below Fair Value: VCX (A$2) is trading below our estimate of fair value (A$2.4)

Significantly Below Fair Value: VCX is trading below fair value, but not by a significant amount.


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 VCX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.00
AU$1.97
-1.3%
5.8%AU$2.20AU$1.73n/a15
Nov ’23AU$1.97
AU$1.99
+0.8%
6.2%AU$2.20AU$1.73n/a15
Oct ’23AU$1.74
AU$2.00
+15.3%
5.7%AU$2.20AU$1.73n/a15
Sep ’23AU$1.93
AU$2.00
+4.0%
5.7%AU$2.20AU$1.73n/a15
Aug ’23AU$2.10
AU$1.97
-6.0%
6.1%AU$2.20AU$1.73n/a15
Jul ’23AU$1.83
AU$1.96
+7.0%
6.2%AU$2.20AU$1.73n/a14
Jun ’23AU$1.90
AU$1.96
+3.4%
5.4%AU$2.20AU$1.82n/a14
May ’23AU$1.88
AU$1.96
+4.7%
5.8%AU$2.20AU$1.82n/a14
Apr ’23AU$1.88
AU$1.97
+4.9%
5.7%AU$2.20AU$1.82n/a14
Mar ’23AU$1.81
AU$1.96
+8.4%
5.4%AU$2.20AU$1.82n/a14
Feb ’23AU$1.64
AU$1.80
+9.8%
4.1%AU$1.93AU$1.70n/a12
Jan ’23AU$1.69
AU$1.78
+5.6%
6.2%AU$1.94AU$1.54n/a12
Dec ’22AU$1.68
AU$1.78
+5.7%
6.2%AU$1.93AU$1.54AU$2.0411
Nov ’22AU$1.72
AU$1.74
+1.5%
5.8%AU$1.93AU$1.54AU$1.9711
Oct ’22AU$1.65
AU$1.72
+4.3%
6.0%AU$1.93AU$1.54AU$1.7411
Sep ’22AU$1.77
AU$1.69
-4.5%
4.3%AU$1.80AU$1.54AU$1.9311
Aug ’22AU$1.56
AU$1.67
+7.5%
5.5%AU$1.80AU$1.49AU$2.1011
Jul ’22AU$1.57
AU$1.69
+7.7%
6.7%AU$1.94AU$1.51AU$1.8311
Jun ’22AU$1.55
AU$1.68
+8.5%
6.5%AU$1.94AU$1.51AU$1.9012
May ’22AU$1.59
AU$1.68
+6.0%
6.4%AU$1.94AU$1.51AU$1.8812
Apr ’22AU$1.64
AU$1.68
+2.4%
6.4%AU$1.94AU$1.51AU$1.8812
Mar ’22AU$1.70
AU$1.67
-1.5%
7.1%AU$1.94AU$1.48AU$1.8112
Feb ’22AU$1.52
AU$1.62
+6.7%
6.6%AU$1.80AU$1.46AU$1.6411
Jan ’22AU$1.61
AU$1.53
-4.8%
11.6%AU$1.74AU$1.18AU$1.6911
Dec ’21AU$1.69
AU$1.48
-12.5%
11.1%AU$1.74AU$1.18AU$1.6811

Analyst Forecast: Target price is lower than the current share price.


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