Dream Office Real Estate Investment Trust

TSX:D.UN Stock Report

Market Cap: CA$368.3m

Dream Office Real Estate Investment Trust Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: D.UN (CA$19.31) is trading above our estimate of fair value (CA$10.97)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for D.UN. This is calculated by dividing D.UN's market cap by their current revenue.
What is D.UN's PS Ratio?
PS Ratio1.6x
SalesCA$202.47m
Market CapCA$368.28m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for D.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2x
TNT.UN True North Commercial Real Estate Investment Trust
1.2xn/aCA$161.0m
AP.UN Allied Properties Real Estate Investment Trust
4.3x11.9%CA$2.5b
INO.UN Inovalis Real Estate Investment Trust
2.5xn/aCA$27.2m
SOT.UN Slate Office REIT
0.2x-2.3%CA$40.3m
D.UN Dream Office Real Estate Investment Trust
1.6x-0.5%CA$368.3m

Price-To-Sales vs Peers: D.UN is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

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

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
D.UN 1.6xIndustry Avg. 2.7xNo. of Companies5PS01.63.24.86.48+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: D.UN is good value based on its Price-To-Sales Ratio (1.6x) compared to the North American Office REITs industry average (2.7x).

Price to Sales Ratio vs Fair Ratio

What is D.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.

D.UN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: D.UN is good value based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 D.UN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$19.31
CA$19.94
+3.3%
14.7%CA$23.00CA$12.50n/a9
Nov ’25CA$20.82
CA$19.94
-4.2%
12.3%CA$23.00CA$14.50n/a9
Oct ’25CA$22.57
CA$18.92
-16.2%
11.1%CA$22.50CA$14.00n/a9
Sep ’25CA$19.47
CA$18.56
-4.7%
11.3%CA$22.50CA$14.00n/a9
Aug ’25CA$18.36
CA$18.50
+0.8%
17.0%CA$25.00CA$12.00n/a9
Jul ’25CA$18.09
CA$18.50
+2.3%
17.0%CA$25.00CA$12.00n/a9
Jun ’25CA$18.22
CA$18.50
+1.5%
17.0%CA$25.00CA$12.00n/a9
May ’25CA$18.63
CA$17.97
-3.5%
18.7%CA$25.00CA$12.00n/a9
Apr ’25CA$16.20
CA$17.89
+10.4%
18.7%CA$25.00CA$12.00n/a9
Mar ’25CA$15.73
CA$18.22
+15.8%
20.0%CA$26.00CA$12.00n/a9
Feb ’25CA$20.74
CA$21.17
+2.1%
10.8%CA$26.00CA$17.50n/a9
Jan ’25CA$20.96
CA$20.61
-1.7%
12.6%CA$26.00CA$17.00n/a9
Dec ’24CA$18.44
CA$19.83
+7.6%
14.4%CA$26.00CA$15.50n/a9
Nov ’24CA$15.58
CA$23.81
+52.8%
23.7%CA$31.50CA$17.00CA$20.828
Oct ’24CA$19.30
CA$27.89
+44.5%
9.6%CA$31.50CA$23.50CA$22.579
Sep ’24CA$26.10
CA$28.61
+9.6%
8.5%CA$31.50CA$24.00CA$19.479
Aug ’24CA$27.40
CA$31.67
+15.6%
11.6%CA$36.00CA$26.00CA$18.369
Jul ’24CA$25.88
CA$33.38
+29.0%
7.3%CA$36.00CA$28.00CA$18.098
Jun ’24CA$29.02
CA$33.33
+14.9%
8.2%CA$36.00CA$27.00CA$18.229
May ’24CA$26.56
CA$35.11
+32.2%
11.7%CA$41.00CA$27.00CA$18.639
Apr ’24CA$29.08
CA$37.88
+30.2%
5.4%CA$41.00CA$35.00CA$16.208
Mar ’24CA$32.02
CA$37.88
+18.3%
5.4%CA$41.00CA$35.00CA$15.738
Feb ’24CA$33.24
CA$37.75
+13.6%
6.3%CA$41.00CA$34.00CA$20.748
Jan ’24CA$29.88
CA$37.56
+25.7%
6.8%CA$41.00CA$34.00CA$20.968
Dec ’23CA$31.04
CA$39.06
+25.8%
6.1%CA$42.00CA$34.50CA$18.448
Nov ’23CA$31.06
CA$42.44
+36.6%
10.5%CA$48.00CA$34.50CA$15.588

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

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