City Office REIT, Inc.

DB:5QV Stock Report

Market Cap: €183.0m

City Office REIT Valuation

Is 5QV 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 5QV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5QV (€4.4) is trading below our estimate of fair value (€8.77)

Significantly Below Fair Value: 5QV is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5QV?

Key metric: As 5QV is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 5QV. This is calculated by dividing 5QV's market cap by their current revenue.
What is 5QV's PS Ratio?
PS Ratio1.1x
SalesUS$173.53m
Market CapUS$193.94m

Price to Sales Ratio vs Peers

How does 5QV's PS Ratio compare to its peers?

The above table shows the PS ratio for 5QV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.4x
AOX alstria office REIT-AG
5.1x-1.5%€1.2b
DKG Deutsche Konsum REIT-AG
1.4x-7.4%€142.7m
HABA Hamborner REIT
4.9x1.7%€514.1m
FVI Fair Value REIT-AG
2.2xn/a€55.3m
5QV City Office REIT
1.1x1.2%€193.9m

Price-To-Sales vs Peers: 5QV is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (3.4x).

Price to Sales Ratio vs Industry

How does 5QV's PS Ratio compare vs other companies in the European Office REITs Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.8.2x-0.5%
5QV City Office REIT
 1.1x1.2%US$193.94m
5QV 1.1xIndustry Avg. 8.2xNo. of Companies5PS0612182430+
4 CompaniesEstimated GrowthMarket Cap
Industry Avg.8.2x66.6%
5QV City Office REIT
 1.1x3.7%US$193.94m
No more companies

Price-To-Sales vs Industry: 5QV is good value based on its Price-To-Sales Ratio (1.1x) compared to the European Office REITs industry average (8.2x).

Price to Sales Ratio vs Fair Ratio

What is 5QV'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.

5QV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio3x

Price-To-Sales vs Fair Ratio: 5QV is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (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 5QV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€4.40
€6.66
+51.3%
21.0%€8.56€5.23n/a3
Nov ’25€4.42
€6.44
+45.6%
21.0%€8.27€5.06n/a3
Oct ’25€4.96
€5.43
+9.5%
8.3%€5.88€4.98n/a2
Sep ’25€5.10
€5.43
+6.4%
8.3%€5.88€4.98n/a2
Aug ’25€5.30
€5.87
+10.7%
16.2%€6.95€4.63n/a3
Jul ’25€4.32
€5.63
+30.4%
18.0%€7.04€4.69n/a3
Jun ’25€4.18
€5.63
+34.8%
18.0%€7.04€4.69n/a3
May ’25€4.24
€5.63
+32.8%
18.0%€7.04€4.69n/a3
Apr ’25€4.56
€5.55
+21.7%
15.6%€6.94€4.63n/a4
Mar ’25€4.16
€5.55
+33.4%
15.6%€6.94€4.63n/a4
Feb ’25€4.78
€5.11
+6.9%
7.4%€5.57€4.65n/a3
Jan ’25€5.55
€5.11
-7.9%
7.4%€5.57€4.65n/a3
Dec ’24€4.34
€5.06
+16.5%
7.4%€5.52€4.60n/a3
Nov ’24€3.54
€5.39
+52.2%
8.3%€5.71€4.76€4.423
Oct ’24€3.92
€5.77
+47.2%
3.8%€6.08€5.62€4.963
Sep ’24€4.58
€6.57
+43.4%
35.2%€11.10€4.63€5.105
Aug ’24€4.86
€6.81
+40.0%
33.4%€11.19€4.66€5.305
Jul ’24€5.15
€6.81
+32.1%
33.4%€11.19€4.66€4.325
Jun ’24€4.18
€6.81
+62.8%
33.4%€11.19€4.66€4.185
May ’24€5.10
€9.49
+86.1%
11.0%€11.28€7.99€4.245
Apr ’24€5.95
€9.49
+59.5%
11.0%€11.28€7.99€4.565
Mar ’24€7.85
€9.71
+23.7%
11.3%€11.31€8.01€4.165
Feb ’24€8.85
€10.24
+15.8%
16.7%€12.92€7.84€4.785
Jan ’24€7.95
€11.31
+42.3%
9.1%€13.20€10.37€5.555
Dec ’23€9.65
€12.41
+28.6%
8.9%€13.90€10.92€4.346
Nov ’23€10.50
€14.22
+35.4%
14.4%€18.06€12.04€3.546

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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