Choice Properties Real Estate Investment Trust

TSX:CHP.UN Stock Report

Market Cap: CA$4.5b

Choice Properties Real Estate Investment Trust Valuation

Is CHP.UN 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-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 CHP.UN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHP.UN (CA$14.04) is trading below our estimate of fair value (CA$26.65)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CHP.UN?

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

The above table shows the Price to Sales ratio for CHP.UN. This is calculated by dividing CHP.UN's market cap by their current revenue.
What is CHP.UN's PS Ratio?
PS Ratio3.2x
SalesCA$1.45b
Market CapCA$4.55b

Price to Sales Ratio vs Peers

How does CHP.UN's PS Ratio compare to its peers?

The above table shows the PS ratio for CHP.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.9x
SRU.UN SmartCentres Real Estate Investment Trust
4x1.8%CA$4.4b
FCR.UN First Capital Real Estate Investment Trust
5.1x2.4%CA$3.8b
REI.UN RioCan Real Estate Investment Trust
4.5x2.2%CA$5.7b
CRT.UN CT Real Estate Investment Trust
6.2x4.3%CA$3.6b
CHP.UN Choice Properties Real Estate Investment Trust
3.2x3.2%CA$4.5b

Price-To-Sales vs Peers: CHP.UN is good value based on its Price-To-Sales Ratio (3.2x) compared to the peer average (4.9x).

Price to Sales Ratio vs Industry

How does CHP.UN's PS Ratio compare vs other companies in the North American Retail REITs Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
CHP.UN 3.2xIndustry Avg. 5.9xNo. of Companies6PS03.26.49.612.816+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CHP.UN is good value based on its Price-To-Sales Ratio (3.2x) compared to the North American Retail REITs industry average (6x).

Price to Sales Ratio vs Fair Ratio

What is CHP.UN'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.

CHP.UN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.2x
Fair PS Ratio6.5x

Price-To-Sales vs Fair Ratio: CHP.UN is good value based on its Price-To-Sales Ratio (3.2x) compared to the estimated Fair Price-To-Sales Ratio (6.5x).

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 CHP.UN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$14.04
CA$15.88
+13.1%
3.0%CA$16.50CA$15.00n/a8
Nov ’25CA$14.07
CA$15.94
+13.3%
4.3%CA$17.00CA$15.00n/a8
Oct ’25CA$15.17
CA$15.69
+3.4%
3.5%CA$16.50CA$15.00n/a8
Sep ’25CA$14.74
CA$15.25
+3.5%
1.6%CA$15.50CA$15.00n/a8
Aug ’25CA$13.85
CA$15.25
+10.1%
1.6%CA$15.50CA$15.00n/a8
Jul ’25CA$12.84
CA$14.94
+16.3%
1.1%CA$15.00CA$14.50n/a8
Jun ’25CA$12.70
CA$14.93
+17.5%
1.2%CA$15.00CA$14.50n/a7
May ’25CA$12.90
CA$14.93
+15.7%
1.2%CA$15.00CA$14.50n/a7
Apr ’25CA$13.58
CA$15.14
+11.5%
2.9%CA$16.00CA$14.50n/a7
Mar ’25CA$13.61
CA$15.14
+11.3%
2.9%CA$16.00CA$14.50n/a7
Feb ’25CA$14.12
CA$15.00
+6.2%
3.1%CA$16.00CA$14.50n/a7
Jan ’25CA$13.95
CA$15.00
+7.5%
3.1%CA$16.00CA$14.50n/a7
Dec ’24CA$13.42
CA$14.71
+9.6%
3.6%CA$15.00CA$13.50n/a7
Nov ’24CA$12.60
CA$15.08
+19.7%
5.9%CA$16.00CA$13.50CA$14.076
Oct ’24CA$12.68
CA$15.56
+22.7%
5.2%CA$16.50CA$14.00CA$15.178
Sep ’24CA$13.28
CA$15.56
+17.2%
5.2%CA$16.50CA$14.00CA$14.748
Aug ’24CA$13.77
CA$15.56
+13.0%
5.2%CA$16.50CA$14.00CA$13.858
Jul ’24CA$13.57
CA$15.88
+17.0%
4.9%CA$17.00CA$14.50CA$12.848
Jun ’24CA$13.49
CA$15.88
+17.7%
4.9%CA$17.00CA$14.50CA$12.708
May ’24CA$14.62
CA$15.88
+8.6%
4.9%CA$17.00CA$14.50CA$12.908
Apr ’24CA$14.52
CA$15.81
+8.9%
4.7%CA$17.00CA$14.50CA$13.588
Mar ’24CA$14.72
CA$15.75
+7.0%
4.8%CA$17.00CA$14.50CA$13.618
Feb ’24CA$14.81
CA$15.53
+4.9%
4.4%CA$16.50CA$14.50CA$14.128
Jan ’24CA$14.76
CA$15.39
+4.3%
4.9%CA$16.50CA$14.50CA$13.959
Dec ’23CA$14.70
CA$15.28
+3.9%
4.2%CA$16.50CA$14.50CA$13.429
Nov ’23CA$13.13
CA$14.72
+12.1%
3.9%CA$15.50CA$13.50CA$12.608

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

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