Triple Point Social Housing REIT plc

LSE:SOHO Stock Report

Market Cap: UK£244.3m

Triple Point Social Housing REIT Valuation

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

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

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SOHO. This is calculated by dividing SOHO's market cap by their current earnings.
What is SOHO's PE Ratio?
PE Ratio9.5x
EarningsUK£25.67m
Market CapUK£244.34m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SOHO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
HOME Home Reit
6.3xn/aUK£300.8m
ESP Empiric Student Property
10.9x22.6%UK£582.9m
UTG Unite Group
15.2x16.8%UK£4.1b
SREI Schroder Real Estate Investment Trust
80.2xn/aUK£242.1m
SOHO Triple Point Social Housing REIT
9.5x27.0%UK£244.3m

Price-To-Earnings vs Peers: SOHO is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (35.4x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SOHO 9.5xIndustry Avg. 26.5xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SOHO is good value based on its Price-To-Earnings Ratio (9.5x) compared to the Global Residential REITs industry average (26.1x).

Price to Earnings Ratio vs Fair Ratio

What is SOHO'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.

SOHO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio18.4x

Price-To-Earnings vs Fair Ratio: SOHO is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).

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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