Link Real Estate Investment Trust

DB:L5R Stock Report

Market Cap: €10.6b

Link Real Estate Investment Trust Valuation

Is L5R 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 L5R when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: L5R (€4.1) is trading below our estimate of fair value (€5.09)

Significantly Below Fair Value: L5R is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for L5R?

Key metric: As L5R is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for L5R. This is calculated by dividing L5R's market cap by their current revenue.
What is L5R's PS Ratio?
PS Ratio6.5x
SalesHK$13.34b
Market CapHK$86.83b

Price to Sales Ratio vs Peers

How does L5R's PS Ratio compare to its peers?

The above table shows the PS ratio for L5R vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.7x
HABA Hamborner REIT
5x1.7%€519.8m
DKG Deutsche Konsum REIT-AG
1.3x-12.7%€143.1m
SCG Scentre Group
7.6x-3.6%AU$19.3b
C38U CapitaLand Integrated Commercial Trust
9x2.6%S$14.2b
L5R Link Real Estate Investment Trust
6.5x3.8%€86.8b

Price-To-Sales vs Peers: L5R is expensive based on its Price-To-Sales Ratio (6.5x) compared to the peer average (5.7x).

Price to Sales Ratio vs Industry

How does L5R's PS Ratio compare vs other companies in the European Retail REITs Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
L5R 6.5xIndustry Avg. 5.7xNo. of Companies7PS03.26.49.612.816+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: L5R is expensive based on its Price-To-Sales Ratio (6.5x) compared to the European Retail REITs industry average (5.8x).

Price to Sales Ratio vs Fair Ratio

What is L5R'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.

L5R PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.5x
Fair PS Ratio15.2x

Price-To-Sales vs Fair Ratio: L5R is good value based on its Price-To-Sales Ratio (6.5x) compared to the estimated Fair Price-To-Sales Ratio (15.2x).

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 L5R forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€4.10
€5.32
+29.8%
5.8%€5.91€4.76n/a16
Nov ’25€4.30
€5.20
+20.9%
5.1%€5.52€4.51n/a16
Oct ’25€4.47
€4.96
+11.1%
6.3%€5.36€4.10n/a16
Sep ’25€4.23
€5.02
+18.7%
7.1%€5.46€4.18n/a16
Aug ’25€4.03
€5.02
+24.6%
8.7%€5.49€3.72n/a16
Jul ’25€3.59
€5.11
+42.3%
8.8%€5.59€3.75n/a16
Jun ’25€3.85
€5.10
+32.5%
8.8%€5.55€3.72n/a16
May ’25€4.00
€5.71
+42.6%
8.3%€7.02€5.11n/a16
Apr ’25€3.95
€5.83
+47.6%
7.6%€6.99€5.09n/a16
Mar ’25€4.46
€5.88
+31.8%
6.7%€6.97€5.32n/a16
Feb ’25€4.63
€5.85
+26.3%
8.4%€6.88€4.90n/a16
Jan ’25€5.00
€5.60
+11.9%
10.7%€6.86€4.53n/a16
Dec ’24€4.48
€5.77
+28.8%
11.2%€7.09€4.68n/a16
Nov ’24€4.32
€5.99
+38.6%
12.6%€7.36€4.55€4.3016
Oct ’24€4.60
€6.61
+43.6%
8.9%€7.66€5.75€4.4716
Sep ’24€4.42
€6.61
+49.6%
8.4%€7.57€5.68€4.2317
Aug ’24€5.00
€6.63
+32.7%
8.0%€7.45€5.58€4.0317
Jul ’24€5.10
€6.83
+33.9%
6.5%€7.58€5.99€3.5917
Jun ’24€5.45
€6.88
+26.2%
6.6%€7.60€6.00€3.8517
May ’24€5.90
€7.21
+22.2%
7.6%€8.95€6.39€4.0017
Apr ’24€5.89
€7.30
+24.0%
7.8%€9.04€6.62€3.9515
Mar ’24€6.16
€7.67
+24.4%
8.8%€9.30€6.81€4.4613
Feb ’24€7.30
€7.96
+9.0%
8.5%€9.84€6.67€4.6316
Jan ’24€6.86
€7.97
+16.1%
10.8%€9.97€6.73€5.0016
Dec ’23€6.53
€8.17
+25.2%
10.6%€10.17€6.94€4.4816
Nov ’23€6.14
€10.05
+63.7%
13.3%€11.62€7.22€4.3216

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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