Seven Hills Realty Trust Valuation

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

SEVN ($12.99) is trading below our estimate of [[fair value]] ($33.56)

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

Below Fair Value: SEVN ($12.99) is trading below our estimate of fair value ($33.56)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SEVN. This is calculated by dividing SEVN's market cap by their current earnings.
What is SEVN's PE Ratio?
PE Ratio	10.3x
Earnings	US$18.80m
Market Cap	US$193.74m

SEVN 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/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	-3.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SEVN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	14.9x
LFT Lument Finance Trust	7.4x	16.2%	US$133.3m
REFI Chicago Atlantic Real Estate Finance	8.1x	2.6%	US$312.2m
AFCG Advanced Flower Capital	40.5x	34.7%	US$211.2m
MITT AG Mortgage Investment Trust	3.4x	-31.6%	US$196.5m
SEVN Seven Hills Realty Trust	10.3x	-3.0%	US$193.7m

Price-To-Earnings vs Peers: SEVN is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (14.9x).

Price to Earnings Ratio vs Industry

How does SEVN's PE Ratio compare vs other companies in the US Mortgage REITs Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SEVN is good value based on its Price-To-Earnings Ratio (10.3x) compared to the US Mortgage REITs industry average (10.5x).

Price to Earnings Ratio vs Fair Ratio

What is SEVN'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.

SEVN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.3x
Fair PE Ratio	9.2x

Price-To-Earnings vs Fair Ratio: SEVN is expensive based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.2x).

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 SEVN forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	US$12.99	US$14.83 +14.2%	1.6%	US$15.00	US$14.50	n/a	3
Nov ’25	US$12.33	US$14.83 +20.3%	1.6%	US$15.00	US$14.50	n/a	3
Oct ’25	US$13.61	US$14.83 +9.0%	1.6%	US$15.00	US$14.50	n/a	3
Sep ’25	US$13.87	US$14.83 +6.9%	1.6%	US$15.00	US$14.50	n/a	3
Aug ’25	US$13.12	US$14.75 +12.4%	1.7%	US$15.00	US$14.50	n/a	2
Jul ’25	US$12.53	US$14.50 +15.7%	3.4%	US$15.00	US$14.00	n/a	2
Jun ’25	US$12.67	US$14.25 +12.5%	5.3%	US$15.00	US$13.50	n/a	2
May ’25	US$12.77	US$14.25 +11.6%	5.3%	US$15.00	US$13.50	n/a	2
Apr ’25	US$13.03	US$14.25 +9.4%	5.3%	US$15.00	US$13.50	n/a	2
Mar ’25	US$12.56	US$14.25 +13.5%	5.3%	US$15.00	US$13.50	n/a	2

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

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