Sumitomo Realty & Development Co., Ltd.

DB:RL2 Stock Report

Market Cap: €13.9b

Sumitomo Realty & Development Valuation

Is RL2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RL2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RL2 (€29) is trading above our estimate of fair value (€12.11)

Significantly Below Fair Value: RL2 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RL2?

Key metric: As RL2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RL2. This is calculated by dividing RL2's market cap by their current earnings.
What is RL2's PE Ratio?
PE Ratio12.2x
EarningsJP¥180.71b
Market CapJP¥2.20t

Price to Earnings Ratio vs Peers

How does RL2's PE Ratio compare to its peers?

The above table shows the PE ratio for RL2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.1x
FC9 FCR Immobilien
13.5x8.8%€99.7m
8802 Mitsubishi Estate
14.9x5.4%JP¥2.6t
SPB Sedlmayr Grund und Immobilien
61.9xn/a€851.8m
1925 Daiwa House Industry
9.9x4.3%JP¥3.0t
RL2 Sumitomo Realty & Development
12.2x4.4%€2.2t

Price-To-Earnings vs Peers: RL2 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (25.1x).

Price to Earnings Ratio vs Industry

How does RL2's PE Ratio compare vs other companies in the DE Real Estate Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GTY Gateway Real Estate
0.7xn/aUS$118.58m
ADJ Adler Group
0.05xn/aUS$53.60m
AAA A.A.A. Allgemeine Anlageverwaltung
2.6xn/aUS$47.44m
N9H Global Connectivity
0.2xn/aUS$1.91m
No more companies available in this PE range
RL2 12.2xIndustry Avg. 18.2xNo. of Companies4PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RL2 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the European Real Estate industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is RL2'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.

RL2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: RL2 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

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 RL2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€29.00
€35.89
+23.8%
13.8%€46.27€27.69n/a11
Nov ’25€27.40
€36.67
+33.8%
14.2%€46.94€28.09n/a11
Oct ’25€29.80
€36.67
+23.1%
14.2%€46.94€28.09n/a11
Sep ’25€30.40
€36.75
+20.9%
12.3%€46.23€29.66n/a11
Aug ’25€27.60
€33.92
+22.9%
12.7%€42.45€27.30n/a10
Jul ’25€27.20
€35.05
+28.9%
13.0%€43.49€27.98n/a10
Jun ’25€28.60
€36.34
+27.1%
13.6%€43.46€27.96n/a10
May ’25€32.40
€35.24
+8.8%
13.4%€41.29€27.33n/a11
Apr ’25€34.00
€31.22
-8.2%
14.3%€41.75€24.56n/a11
Mar ’25€27.40
€29.22
+6.6%
12.9%€35.89€23.33n/a11
Feb ’25€29.00
€28.66
-1.2%
14.1%€36.69€23.85n/a11
Jan ’25€26.60
€28.04
+5.4%
13.0%€37.45€24.35n/a12
Dec ’24€26.00
€26.68
+2.6%
13.4%€35.98€22.72n/a12
Nov ’24€24.00
€26.68
+11.2%
14.8%€36.64€21.55€27.4013
Oct ’24€24.40
€26.41
+8.2%
15.5%€36.67€21.57€29.8013
Sep ’24€23.80
€25.56
+7.4%
15.2%€36.31€21.36€30.4013
Aug ’24€24.20
€25.34
+4.7%
16.5%€36.75€19.08€27.6013
Jul ’24€22.40
€25.13
+12.2%
16.9%€36.67€19.03€27.2013
Jun ’24€23.00
€24.92
+8.3%
18.1%€38.70€20.09€28.6013
May ’24€21.00
€23.78
+13.2%
17.6%€35.40€19.89€32.4012
Apr ’24€20.40
€26.07
+27.8%
15.4%€37.09€20.84€34.0012
Mar ’24€21.80
€27.20
+24.8%
13.2%€37.79€21.94€27.4013
Feb ’24€21.80
€27.83
+27.7%
13.4%€38.40€22.29€29.0013
Jan ’24€21.80
€28.20
+29.4%
11.2%€37.43€23.83€26.6013
Dec ’23€24.80
€28.47
+14.8%
10.8%€37.49€23.87€26.0013
Nov ’23€23.60
€28.48
+20.7%
10.6%€37.58€23.93€24.0013

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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