Dream Unlimited Corp.

TSX:DRM Stock Report

Market Cap: CA$1.1b

Dream Unlimited Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: DRM (CA$25.37) is trading above our estimate of fair value (CA$4.09)

Significantly Below Fair Value: DRM is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As DRM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DRM. This is calculated by dividing DRM's market cap by their current revenue.
What is DRM's PS Ratio?
PS Ratio2x
SalesCA$540.11m
Market CapCA$1.07b

Price to Sales Ratio vs Peers

How does DRM's PS Ratio compare to its peers?

The above table shows the PS ratio for DRM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2x
MRD Melcor Developments
1.3xn/aCA$394.2m
GDC Genesis Land Development
0.7xn/aCA$220.9m
MRC Morguard
1.1x-0.02%CA$1.3b
SVI StorageVault Canada
5x5.6%CA$1.5b
DRM Dream Unlimited
2x-18.1%CA$1.1b

Price-To-Sales vs Peers: DRM is good value based on its Price-To-Sales Ratio (2x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does DRM's PS Ratio compare vs other companies in the CA Real Estate Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
BRE Bridgemarq Real Estate Services
0.6x-36.1%US$171.65m
BRED Purebread Brands
0.5xn/aUS$4.97m
IVQ Invesque
0.02xn/aUS$4.22m
No more companies available in this PS range
DRM 2.0xIndustry Avg. 2.7xNo. of Companies7PS02.44.87.29.612+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DRM is good value based on its Price-To-Sales Ratio (2x) compared to the Canadian Real Estate industry average (2.7x).

Price to Sales Ratio vs Fair Ratio

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

DRM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: DRM is expensive based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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 DRM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$25.37
CA$37.50
+47.8%
6.7%CA$40.00CA$35.00n/a2
Nov ’25CA$28.73
CA$37.50
+30.5%
6.7%CA$40.00CA$35.00n/a2
Oct ’25CA$33.19
CA$37.50
+13.0%
6.7%CA$40.00CA$35.00n/a2
Sep ’25CA$26.40
CA$36.50
+38.3%
9.6%CA$40.00CA$33.00n/a2
Aug ’25CA$21.88
CA$35.00
+60.0%
14.3%CA$40.00CA$30.00n/a2
Jul ’25CA$19.65
CA$35.00
+78.1%
14.3%CA$40.00CA$30.00n/a2
Jun ’25CA$19.00
CA$35.00
+84.2%
14.3%CA$40.00CA$30.00n/a2
May ’25CA$18.23
CA$35.00
+92.0%
14.3%CA$40.00CA$30.00n/a2
Apr ’25CA$19.30
CA$33.50
+73.6%
19.4%CA$40.00CA$27.00n/a2
Mar ’25CA$21.02
CA$33.50
+59.4%
19.4%CA$40.00CA$27.00n/a2
Feb ’25CA$23.08
CA$33.50
+45.1%
19.4%CA$40.00CA$27.00n/a2
Jan ’25CA$22.65
CA$33.50
+47.9%
19.4%CA$40.00CA$27.00n/a2
Dec ’24CA$20.61
CA$32.50
+57.7%
23.1%CA$40.00CA$25.00n/a2
Nov ’24CA$17.11
CA$32.50
+89.9%
23.1%CA$40.00CA$25.00CA$28.732
Oct ’24CA$18.38
CA$36.50
+98.6%
23.3%CA$45.00CA$28.00CA$33.192
Sep ’24CA$21.72
CA$36.50
+68.0%
23.3%CA$45.00CA$28.00CA$26.402
Aug ’24CA$20.48
CA$40.00
+95.3%
25.0%CA$50.00CA$30.00CA$21.882
Jul ’24CA$20.63
CA$42.50
+106.0%
17.6%CA$50.00CA$35.00CA$19.652
Jun ’24CA$20.78
CA$42.50
+104.5%
17.6%CA$50.00CA$35.00CA$19.002
May ’24CA$22.12
CA$46.50
+110.2%
7.5%CA$50.00CA$43.00CA$18.232
Apr ’24CA$23.67
CA$46.50
+96.5%
7.5%CA$50.00CA$43.00CA$19.302
Mar ’24CA$26.29
CA$46.50
+76.9%
7.5%CA$50.00CA$43.00CA$21.022
Nov ’23CA$24.78
CA$44.00
+77.6%
13.6%CA$50.00CA$38.00CA$17.112

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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