Triple Point Social Housing REIT plc

BATS-CHIXE:SOHOL Stock Report

Market Cap: UK£241.6m

Triple Point Social Housing REIT Valuation

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

Below Fair Value: SOHOL (£0.62) is trading below our estimate of fair value (£1.29)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SOHOL. This is calculated by dividing SOHOL's market cap by their current earnings.
What is SOHOL's PE Ratio?
PE Ratio9.4x
EarningsUK£25.67m
Market CapUK£241.59m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SOHOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.6x
HOME Home Reit
6.3xn/aUK£300.8m
ESP Empiric Student Property
10.6x22.6%UK£566.3m
UTG Unite Group
15.6x15.5%UK£4.3b
SREI Schroder Real Estate Investment Trust
82xn/aUK£247.5m
SOHOL Triple Point Social Housing REIT
9.4x4.5%UK£241.6m

Price-To-Earnings vs Peers: SOHOL is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (36.1x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies4PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SOHOL is good value based on its Price-To-Earnings Ratio (9.4x) compared to the Global Residential REITs industry average (27.1x).

Price to Earnings Ratio vs Fair Ratio

What is SOHOL'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.

SOHOL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.4x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: SOHOL is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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