The PRS REIT plc

LSE:PRSR Stock Report

Market Cap: UK£567.9m

PRS REIT Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: PRSR (£1.03) is trading below our estimate of fair value (£1.28)

Significantly Below Fair Value: PRSR 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 PRSR?

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

The above table shows the Price to Earnings ratio for PRSR. This is calculated by dividing PRSR's market cap by their current earnings.
What is PRSR's PE Ratio?
PE Ratio6.1x
EarningsUK£93.68m
Market CapUK£567.93m

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14x
ESP Empiric Student Property
10.9x22.6%UK£582.9m
SHED Urban Logistics REIT
28.4x54.6%UK£515.4m
THRL Target Healthcare REIT
7.1x3.4%UK£519.8m
SOHO Triple Point Social Housing REIT
9.5x27.0%UK£244.3m
PRSR PRS REIT
6.1x0.8%UK£567.9m

Price-To-Earnings vs Peers: PRSR is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PRSR 6.1xIndustry Avg. 26.5xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRSR is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Global Residential REITs industry average (26.1x).

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 Ratio6.1x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: PRSR is good value based on its Price-To-Earnings Ratio (6.1x) 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?

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£1.03
UK£1.19
+15.1%
15.7%UK£1.45UK£1.02n/a3
Nov ’25UK£1.07
UK£1.22
+14.3%
14.4%UK£1.45UK£1.02n/a3
Oct ’25UK£1.00
UK£1.09
+9.0%
21.1%UK£1.30UK£0.77n/a3
Sep ’25UK£0.95
UK£1.04
+10.3%
20.8%UK£1.30UK£0.77n/a3
Aug ’25UK£0.84
UK£1.04
+24.2%
20.8%UK£1.30UK£0.77n/a3
Jul ’25UK£0.76
UK£1.04
+37.3%
20.8%UK£1.30UK£0.77n/a3
Jun ’25UK£0.77
UK£1.04
+35.7%
20.8%UK£1.30UK£0.77n/a3
May ’25UK£0.79
UK£1.04
+32.9%
20.8%UK£1.30UK£0.77n/a3
Apr ’25UK£0.80
UK£1.07
+34.6%
20.7%UK£1.30UK£0.77n/a3
Mar ’25UK£0.75
UK£1.07
+42.7%
20.7%UK£1.30UK£0.77n/a3
Feb ’25UK£0.82
UK£1.05
+27.7%
18.5%UK£1.30UK£0.77n/a4
Jan ’25UK£0.86
UK£1.05
+22.1%
18.5%UK£1.30UK£0.77n/a4
Dec ’24UK£0.81
UK£1.05
+28.4%
19.7%UK£1.30UK£0.74n/a4
Nov ’24UK£0.73
UK£1.05
+43.2%
19.7%UK£1.30UK£0.74UK£1.074
Oct ’24UK£0.68
UK£1.02
+49.6%
17.4%UK£1.20UK£0.74UK£1.004
Sep ’24UK£0.71
UK£1.01
+42.3%
16.9%UK£1.20UK£0.74UK£0.954
Aug ’24UK£0.82
UK£1.02
+24.5%
14.3%UK£1.20UK£0.80UK£0.844
Jul ’24UK£0.80
UK£1.02
+27.2%
14.3%UK£1.20UK£0.80UK£0.764
Jun ’24UK£0.86
UK£1.10
+27.2%
7.5%UK£1.20UK£1.00UK£0.773
May ’24UK£0.86
UK£1.06
+23.0%
9.0%UK£1.20UK£0.95UK£0.794
Apr ’24UK£0.81
UK£1.06
+31.0%
9.0%UK£1.20UK£0.95UK£0.804
Mar ’24UK£0.87
UK£1.01
+15.7%
13.3%UK£1.20UK£0.80UK£0.755
Feb ’24UK£0.92
UK£1.01
+9.7%
13.3%UK£1.20UK£0.80UK£0.825
Jan ’24UK£0.89
UK£1.01
+13.4%
13.3%UK£1.20UK£0.80UK£0.865
Dec ’23UK£0.87
UK£1.01
+16.0%
13.3%UK£1.20UK£0.80UK£0.815
Nov ’23UK£0.87
UK£1.01
+15.3%
13.3%UK£1.20UK£0.80UK£0.735

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

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