The PRS REIT plc

LSE:PRSR Stock Report

Mkt Cap: UK£469.6m

We’ve recently updated our valuation analysis.

PRS REIT Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PRSR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue17.6x
Enterprise Value/EBITDAn/a
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRSR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.9x
CSH Civitas Social Housing
7x-17.6%UK£484.5m
SHED Urban Logistics REIT
5.1xn/aUK£625.8m
ESP Empiric Student Property
8.2x3.9%UK£553.9m
WHR Warehouse REIT
7.3xn/aUK£424.9m
PRSR PRS REIT
5.1x-17.2%UK£469.6m

Price-To-Earnings vs Peers: PRSR is good value based on its Price-To-Earnings Ratio (5.1x) compared to the peer average (6.9x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.4%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.4%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: PRSR is good value based on its Price-To-Earnings Ratio (5.1x) compared to the Global Residential REITs industry average (13.9x)

Price to Earnings Ratio vs Fair Ratio

What is PRSR'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.

PRSR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.1x
Fair PE Ratio5.5x

Price-To-Earnings vs Fair Ratio: PRSR is good value based on its Price-To-Earnings Ratio (5.1x) compared to the estimated Fair Price-To-Earnings Ratio (5.4x).

Share Price vs Fair Value

What is the Fair Price of PRSR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRSR (£0.86) is trading below our estimate of fair value (£2.02)

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

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 PRSR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.85
UK£1.02
+19.6%
14.3%UK£1.20UK£0.80n/a4
May ’24UK£0.86
UK£1.01
+16.9%
13.3%UK£1.20UK£0.80n/a5
Apr ’24UK£0.81
UK£1.01
+24.6%
13.3%UK£1.20UK£0.80n/a5
Mar ’24UK£0.87
UK£1.01
+15.7%
13.3%UK£1.20UK£0.80n/a5
Feb ’24UK£0.92
UK£1.01
+9.7%
13.3%UK£1.20UK£0.80n/a5
Jan ’24UK£0.89
UK£1.01
+13.4%
13.3%UK£1.20UK£0.80n/a5
Dec ’23UK£0.87
UK£1.01
+16.0%
13.3%UK£1.20UK£0.80n/a5
Nov ’23UK£0.87
UK£1.01
+15.3%
13.3%UK£1.20UK£0.80n/a5
Oct ’23UK£0.94
UK£1.09
+15.8%
8.7%UK£1.20UK£0.96n/a5
Sep ’23UK£1.01
UK£1.10
+8.3%
9.0%UK£1.20UK£0.96n/a5
Aug ’23UK£1.09
UK£1.13
+3.1%
7.6%UK£1.20UK£0.96n/a5
Jul ’23UK£1.05
UK£1.13
+7.2%
8.0%UK£1.20UK£0.95n/a5
Jun ’23UK£1.09
UK£1.13
+3.7%
8.0%UK£1.20UK£0.95n/a5
May ’23UK£1.08
UK£1.13
+4.3%
8.0%UK£1.20UK£0.95UK£0.865
Apr ’23UK£1.07
UK£1.13
+5.4%
8.0%UK£1.20UK£0.95UK£0.815
Mar ’23UK£1.06
UK£1.13
+7.3%
6.9%UK£1.20UK£0.98UK£0.875
Feb ’23UK£1.02
UK£1.13
+11.0%
6.9%UK£1.20UK£0.98UK£0.925
Jan ’23UK£1.10
UK£1.14
+3.3%
7.1%UK£1.20UK£0.98UK£0.895
Dec ’22UK£1.02
UK£1.12
+9.8%
7.4%UK£1.20UK£0.98UK£0.874
Nov ’22UK£1.02
UK£1.12
+9.8%
7.4%UK£1.20UK£0.98UK£0.874
Oct ’22UK£1.00
UK£1.10
+10.0%
6.4%UK£1.15UK£1.00UK£0.943
Sep ’22UK£1.06
UK£1.08
+1.7%
6.7%UK£1.15UK£1.00UK£1.014
Aug ’22UK£1.05
UK£1.08
+3.1%
6.7%UK£1.15UK£1.00UK£1.094
Jul ’22UK£1.02
UK£1.04
+1.5%
6.5%UK£1.15UK£0.98UK£1.054
Jun ’22UK£0.97
UK£1.05
+7.7%
7.1%UK£1.15UK£0.98UK£1.093
May ’22UK£0.96
UK£1.05
+8.5%
7.1%UK£1.15UK£0.98UK£1.083

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

Discover undervalued companies