Essential Properties Realty Trust, Inc.

DB:2OU Stock Report

Market Cap: €5.7b

Essential Properties Realty Trust Valuation

Is 2OU 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 2OU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€85.99
Fair Value
64.9% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: 2OU (€30.19) is trading below our estimate of fair value (€85.99)

Significantly Below Fair Value: 2OU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2OU?

Key metric: As 2OU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2OU. This is calculated by dividing 2OU's market cap by their current earnings.
What is 2OU's PE Ratio?
PE Ratio29.4x
EarningsUS$202.53m
Market CapUS$5.97b

Price to Earnings Ratio vs Peers

How does 2OU's PE Ratio compare to its peers?

The above table shows the PE ratio for 2OU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.1x
LMP LondonMetric Property
19.3x15.1%UK£3.9b
N2IU Mapletree Pan Asia Commercial Trust
13.8x3.9%S$6.2b
LAND Land Securities Group
40.8x26.9%UK£4.4b
MRL MERLIN Properties SOCIMI
46.4x27.1%€6.1b
2OU Essential Properties Realty Trust
29.4x12.8%€6.0b

Price-To-Earnings vs Peers: 2OU is good value based on its Price-To-Earnings Ratio (29.4x) compared to the peer average (30.5x).

Price to Earnings Ratio vs Industry

How does 2OU's PE Ratio compare vs other companies in the European REITs Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2OU 29.4xIndustry Avg. 22.6xNo. of Companies10PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2OU is expensive based on its Price-To-Earnings Ratio (29.4x) compared to the European REITs industry average (22.6x).

Price to Earnings Ratio vs Fair Ratio

What is 2OU'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.

2OU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.4x
Fair PE Ratio56.3x

Price-To-Earnings vs Fair Ratio: 2OU is good value based on its Price-To-Earnings Ratio (29.4x) compared to the estimated Fair Price-To-Earnings Ratio (56.3x).

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 2OU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€30.19
€33.95
+12.4%
6.3%€38.29€28.24n/a19
Feb ’26€30.83
€34.73
+12.7%
6.9%€38.92€28.71n/a18
Jan ’26€29.59
€34.46
+16.5%
7.0%€38.14€28.13n/a18
Dec ’25€32.04
€33.69
+5.1%
7.2%€37.86€27.92n/a16
Nov ’25€28.92
€32.25
+11.5%
7.7%€35.99€27.22n/a16
Oct ’25€30.21
€30.90
+2.3%
7.0%€34.33€26.65n/a16
Sep ’25€28.73
€29.69
+3.3%
5.3%€32.39€26.54n/a16
Aug ’25€27.42
€28.83
+5.1%
7.9%€32.32€24.93n/a14
Jul ’25€25.49
€27.38
+7.4%
5.0%€30.81€25.20n/a15
Jun ’25€24.70
€26.67
+8.0%
3.9%€28.58€24.89n/a14
May ’25€24.59
€26.33
+7.1%
4.7%€28.91€24.25n/a13
Apr ’25€24.48
€25.98
+6.1%
4.6%€28.69€24.06n/a13
Mar ’25€22.40
€25.75
+14.9%
5.1%€28.78€23.21n/a13
Feb ’25€23.18
€25.26
+9.0%
6.0%€28.69€23.14€30.8312
Jan ’25€23.18
€24.78
+6.9%
11.4%€32.69€20.88€29.5912
Dec ’24€22.50
€24.34
+8.2%
12.5%€32.81€20.96€32.0412
Nov ’24€21.10
€25.04
+18.7%
13.5%€34.10€21.79€28.9211
Oct ’24€20.40
€26.52
+30.0%
10.2%€33.77€23.45€30.2111
Sep ’24€22.34
€26.18
+17.2%
10.6%€33.18€23.04€28.7310
Aug ’24€22.06
€25.90
+17.4%
10.2%€32.82€22.80€27.4210
Jul ’24€21.50
€25.67
+19.4%
10.6%€32.86€22.82€25.4910
Jun ’24€22.08
€25.25
+14.4%
11.1%€32.97€21.98€24.7011
May ’24€22.26
€25.09
+12.7%
10.9%€32.66€21.77€24.5911
Apr ’24€22.65
€25.22
+11.3%
11.4%€33.21€22.14€24.4811
Mar ’24€23.88
€25.49
+6.8%
11.9%€33.76€22.51€22.4010
Feb ’24€22.76
€24.03
+5.6%
13.8%€33.19€20.28€23.1811
Analyst Price Target
Consensus Narrative from 19 Analysts
€33.75
Fair Value
10.5% undervalued intrinsic discount
19
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/19 19:43
End of Day Share Price 2025/02/18 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Essential Properties Realty Trust, Inc. is covered by 31 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Richard HightowerBarclays
Nathan CrossettBerenberg
null nullBMO Capital Markets Equity Research