Target Healthcare REIT PLC

LSE:THRL Stock Report

Market Cap: UK£537.7m

Target Healthcare REIT Valuation

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

Discounted Cash Flow
Simply Wall St
UK£1.12
Fair Value
22.9% undervalued intrinsic discount
2
Number of Analysts

Below Fair Value: THRL (£0.87) is trading below our estimate of fair value (£1.12)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for THRL. This is calculated by dividing THRL's market cap by their current earnings.
What is THRL's PE Ratio?
PE Ratio7.4x
EarningsUK£73.02m
Market CapUK£537.75m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for THRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
CRT Care REIT
7.4x7.2%UK£354.3m
AGR Assura
18.6x19.6%UK£1.2b
ESP Empiric Student Property
10.4x22.6%UK£557.1m
SHED Urban Logistics REIT
28.1x50.9%UK£509.7m
THRL Target Healthcare REIT
7.4x2.9%UK£537.7m

Price-To-Earnings vs Peers: THRL is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does THRL's PE Ratio compare vs other companies in the Global Health Care REITs Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
THRL 7.4xIndustry Avg. 25.9xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: THRL is good value based on its Price-To-Earnings Ratio (7.4x) compared to the Global Health Care REITs industry average (25.9x).

Price to Earnings Ratio vs Fair Ratio

What is THRL'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.

THRL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.4x
Fair PE Ratio13.4x

Price-To-Earnings vs Fair Ratio: THRL is good value based on its Price-To-Earnings Ratio (7.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x).

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 THRL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.87
UK£0.92
+6.1%
2.2%UK£0.94UK£0.90n/a2
Nov ’25UK£0.90
UK£1.05
+16.4%
4.8%UK£1.10UK£1.00n/a2
Oct ’25UK£0.91
UK£1.05
+15.5%
4.8%UK£1.10UK£1.00n/a2
Sep ’25UK£0.83
UK£0.99
+19.3%
4.5%UK£1.04UK£0.95n/a2
Aug ’25UK£0.82
UK£0.99
+20.9%
4.5%UK£1.04UK£0.95n/a2
Jul ’25UK£0.78
UK£0.99
+26.9%
4.5%UK£1.04UK£0.95n/a2
Jun ’25UK£0.78
UK£0.99
+27.2%
4.5%UK£1.04UK£0.95n/a2
May ’25UK£0.79
UK£0.99
+26.8%
4.5%UK£1.04UK£0.95n/a2
Apr ’25UK£0.84
UK£1.02
+20.5%
6.4%UK£1.08UK£0.95n/a2
Mar ’25UK£0.80
UK£1.02
+27.0%
6.4%UK£1.08UK£0.95n/a2
Feb ’25UK£0.82
UK£1.00
+21.4%
5.0%UK£1.05UK£0.95UK£0.872
Jan ’25UK£0.86
UK£1.00
+15.9%
5.0%UK£1.05UK£0.95UK£0.842
Dec ’24UK£0.84
UK£1.00
+19.6%
5.0%UK£1.05UK£0.95UK£0.842
Nov ’24UK£0.74
UK£1.00
+34.6%
5.0%UK£1.05UK£0.95UK£0.902
Oct ’24UK£0.76
UK£1.01
+33.2%
5.9%UK£1.07UK£0.95UK£0.912
Sep ’24UK£0.74
UK£1.01
+36.9%
5.9%UK£1.07UK£0.95UK£0.832
Aug ’24UK£0.73
UK£1.01
+37.6%
5.9%UK£1.07UK£0.95UK£0.822
Jul ’24UK£0.72
UK£1.01
+40.7%
5.9%UK£1.07UK£0.95UK£0.782
Jun ’24UK£0.78
UK£1.01
+29.2%
5.9%UK£1.07UK£0.95UK£0.782
May ’24UK£0.77
UK£0.97
+26.1%
7.3%UK£1.07UK£0.90UK£0.793
Apr ’24UK£0.70
UK£0.97
+38.8%
7.3%UK£1.07UK£0.90UK£0.843
Mar ’24UK£0.77
UK£0.97
+26.4%
7.3%UK£1.07UK£0.90UK£0.803
Feb ’24UK£0.80
UK£0.97
+21.5%
7.3%UK£1.07UK£0.90UK£0.823
Analyst Price Target
Consensus Narrative from 2 Analysts
UK£0.92
Fair Value
5.8% undervalued intrinsic discount
2
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/31 03:00
End of Day Share Price 2025/01/31 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

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

Target Healthcare REIT PLC is covered by 6 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Tom HorneBerenberg
Martyn KingEdison Investment Research
Michael PrewJefferies LLC