American Homes 4 Rent

LSE:0HEJ Stock Report

Market Cap: US$15.6b

American Homes 4 Rent Valuation

Is 0HEJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 0HEJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HEJ ($36.66) is trading below our estimate of fair value ($55.74)

Significantly Below Fair Value: 0HEJ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HEJ?

Key metric: As 0HEJ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HEJ. This is calculated by dividing 0HEJ's market cap by their current earnings.
What is 0HEJ's PE Ratio?
PE Ratio39.1x
EarningsUS$350.68m
Market CapUS$15.61b

Price to Earnings Ratio vs Peers

How does 0HEJ's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HEJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.7x
PRSR PRS REIT
6.3x0.8%UK£591.0m
UTG Unite Group
14.5x12.8%UK£3.9b
LAND Land Securities Group
40.9x26.7%UK£4.3b
BLND British Land
21.3x22.3%UK£3.6b
0HEJ American Homes 4 Rent
39.1x-6.3%US$15.6b

Price-To-Earnings vs Peers: 0HEJ is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the peer average (20.6x).

Price to Earnings Ratio vs Industry

How does 0HEJ's PE Ratio compare vs other companies in the Global Residential REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0HEJ 39.1xIndustry Avg. 26.4xNo. of Companies8PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HEJ is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the Global Residential REITs industry average (26.7x).

Price to Earnings Ratio vs Fair Ratio

What is 0HEJ'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.

0HEJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.1x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: 0HEJ is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

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 0HEJ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$36.66
US$41.16
+12.3%
4.7%US$44.00US$38.00n/a19
Dec ’25US$38.59
US$41.37
+7.2%
4.7%US$44.00US$38.00n/a19
Nov ’25US$34.90
US$41.63
+19.3%
4.1%US$44.00US$39.00n/a19
Oct ’25US$38.26
US$41.95
+9.6%
5.3%US$48.00US$39.00n/a19
Sep ’25US$39.51
US$41.00
+3.8%
4.1%US$44.00US$38.00n/a18
Aug ’25US$36.72
US$40.00
+8.9%
4.4%US$43.00US$36.00n/a18
Jul ’25US$37.11
US$39.95
+7.7%
4.3%US$42.00US$36.00n/a19
Jun ’25US$35.80
US$39.89
+11.5%
4.5%US$42.00US$36.00n/a19
May ’25US$36.23
US$39.76
+9.7%
4.8%US$43.00US$36.00n/a19
Apr ’25US$36.69
US$39.71
+8.2%
4.9%US$43.00US$36.00n/a19
Mar ’25US$36.71
US$39.11
+6.5%
5.3%US$43.00US$36.00n/a19
Feb ’25US$34.65
US$39.28
+13.4%
5.6%US$44.00US$36.00n/a18
Jan ’25US$36.05
US$38.53
+6.9%
6.2%US$44.00US$35.00n/a17
Dec ’24US$36.84
US$37.71
+2.4%
5.4%US$43.00US$34.00US$38.5917
Nov ’24US$32.71
US$37.59
+14.9%
5.2%US$43.00US$35.00US$34.9017
Oct ’24US$33.43
US$38.35
+14.7%
5.7%US$43.00US$35.00US$38.2617
Sep ’24US$36.04
US$38.76
+7.6%
5.6%US$43.00US$36.00US$39.5117
Aug ’24US$37.34
US$37.66
+0.8%
6.1%US$43.00US$34.50US$36.7216
Jul ’24US$34.04
US$37.03
+8.8%
6.8%US$43.00US$33.00US$37.1116
Jun ’24US$34.59
US$36.58
+5.8%
9.6%US$43.00US$30.00US$35.8018
May ’24US$33.39
US$34.76
+4.1%
7.3%US$39.00US$30.00US$36.2319
Apr ’24US$30.85
US$34.55
+12.0%
7.0%US$38.00US$30.00US$36.6919
Mar ’24US$30.12
US$34.87
+15.8%
6.7%US$38.00US$30.00US$36.7119
Feb ’24US$34.01
US$35.48
+4.3%
8.7%US$42.00US$30.00US$34.6520
Jan ’24US$30.23
US$36.08
+19.3%
7.8%US$42.00US$31.00US$36.0519
Dec ’23US$31.99
US$37.85
+18.3%
11.8%US$53.00US$33.00US$36.8420

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 18:06
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

American Homes 4 Rent is covered by 41 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew BabinBaird
Anthony PowellBarclays
Richard HightowerBarclays