Highwoods Properties, Inc.

DB:HQS Stock Report

Market Cap: €3.3b

Highwoods Properties Valuation

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

Below Fair Value: HQS (€30.6) is trading below our estimate of fair value (€47.28)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HQS. This is calculated by dividing HQS's market cap by their current earnings.
What is HQS's PE Ratio?
PE Ratio23.9x
EarningsUS$141.49m
Market CapUS$3.46b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HQS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.2x
CDP COPT Defense Properties
26.1x4.0%US$3.6b
8954 ORIX JREIT
20xn/aJP¥460.6b
HABA Hamborner REIT
63x11.0%€515.7m
EMBASSY Embassy Office Parks REIT
15.7x-17.3%₹348.9b
HQS Highwoods Properties
23.9x-32.2%€3.5b

Price-To-Earnings vs Peers: HQS is good value based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (31.2x).

Price to Earnings Ratio vs Industry

How does HQS's PE Ratio compare vs other companies in the Global Office REITs Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HQS 23.9xIndustry Avg. 20.0xNo. of Companies8PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HQS is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the Global Office REITs industry average (20x).

Price to Earnings Ratio vs Fair Ratio

What is HQS'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.

HQS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HQS's Price-To-Earnings Fair Ratio for valuation analysis.

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 HQS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€30.60
€30.14
-1.5%
14.8%€34.85€21.66n/a9
Nov ’25€29.40
€29.12
-1.0%
15.5%€34.14€20.30n/a9
Oct ’25€30.00
€27.00
-10.0%
15.2%€31.62€18.97n/a9
Sep ’25€28.80
€25.46
-11.6%
15.6%€31.27€18.76n/a10
Aug ’25€28.20
€25.44
-9.8%
14.0%€30.53€19.43n/a10
Jul ’25€24.40
€24.46
+0.2%
11.9%€28.94€19.60n/a10
Jun ’25€23.60
€23.94
+1.4%
12.0%€28.54€19.34n/a10
May ’25€24.40
€23.66
-3.0%
9.4%€27.12€19.64n/a10
Apr ’25€24.00
€22.80
-5.0%
10.0%€26.88€19.47n/a10
Mar ’25€22.80
€22.48
-1.4%
12.4%€26.83€16.65n/a10
Feb ’25€20.60
€21.61
+4.9%
12.4%€25.85€16.62n/a10
Jan ’25€20.80
€19.73
-5.2%
13.5%€25.36€16.30n/a9
Dec ’24€18.60
€19.90
+7.0%
13.5%€25.59€16.45n/a9
Nov ’24€16.80
€22.29
+32.7%
21.7%€33.12€17.03€29.409
Oct ’24€19.30
€24.38
+26.3%
14.7%€32.05€20.15€30.008
Sep ’24€22.20
€24.38
+9.8%
14.7%€32.05€20.15€28.808
Aug ’24€22.20
€24.81
+11.8%
12.8%€31.87€20.03€28.208
Jul ’24€21.60
€24.70
+14.4%
15.3%€32.42€20.38€24.409
Jun ’24€18.60
€24.79
+33.3%
14.6%€32.62€20.51€23.6010
May ’24€20.40
€25.25
+23.8%
13.2%€31.91€20.97€24.4010
Apr ’24€20.60
€25.81
+25.3%
13.8%€32.27€20.28€24.0010
Mar ’24€25.00
€29.76
+19.1%
8.3%€33.18€25.59€22.8010
Feb ’24€27.40
€27.79
+1.4%
10.8%€32.21€22.09€20.6010
Jan ’24€25.80
€29.67
+15.0%
4.8%€31.08€28.25€20.802
Dec ’23€27.40
€30.28
+10.5%
9.3%€34.61€25.96€18.6010
Nov ’23€28.40
€32.83
+15.6%
13.6%€40.67€26.78€16.8010

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

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