RMR Group Valuation

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

Below Fair Value: RMR ($22.15) is trading below our estimate of fair value ($22.26)

Significantly Below Fair Value: RMR 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 RMR?

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

The above table shows the Price to Earnings ratio for RMR. This is calculated by dividing RMR's market cap by their current earnings.
What is RMR's PE Ratio?
PE Ratio16.4x
EarningsUS$22.81m
Market CapUS$699.65m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RMR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.8x
FPH Five Point Holdings
5.3xn/aUS$579.6m
JOE St. Joe
42.6xn/aUS$2.9b
CHCI Comstock Holding Companies
15.6xn/aUS$93.6m
FRPH FRP Holdings
79.5xn/aUS$598.1m
RMR RMR Group
16.4x4.7%US$699.6m

Price-To-Earnings vs Peers: RMR is good value based on its Price-To-Earnings Ratio (16.4x) compared to the peer average (35.8x).


Price to Earnings Ratio vs Industry

How does RMR's PE Ratio compare vs other companies in the US Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
STHO Star Holdings
1.8xn/aUS$150.51m
STSR Strategic Student & Senior Housing Trust
2.5xn/aUS$41.31m
XIN Xinyuan Real Estate
0.4xn/aUS$19.70m
ILAL International Land Alliance
2.4xn/aUS$6.71m
RMR 16.4xIndustry Avg. 31.7xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RMR is good value based on its Price-To-Earnings Ratio (16.4x) compared to the US Real Estate industry average (31.7x).


Price to Earnings Ratio vs Fair Ratio

What is RMR'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.

RMR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.4x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: RMR is good value based on its Price-To-Earnings Ratio (16.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).


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 RMR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$22.15
US$27.50
+24.2%
9.1%US$30.00US$25.00n/a2
Nov ’25US$23.59
US$28.50
+20.8%
12.3%US$32.00US$25.00n/a2
Oct ’25US$25.15
US$28.50
+13.3%
12.3%US$32.00US$25.00n/a2
Sep ’25US$25.49
US$28.50
+11.8%
12.3%US$32.00US$25.00n/a2
Aug ’25US$25.30
US$28.50
+12.6%
12.3%US$32.00US$25.00n/a2
Jul ’25US$22.48
US$28.50
+26.8%
12.3%US$32.00US$25.00n/a2
Jun ’25US$23.53
US$28.50
+21.1%
12.3%US$32.00US$25.00n/a2
May ’25US$24.05
US$30.00
+24.7%
16.7%US$35.00US$25.00n/a2
Apr ’25US$23.69
US$30.00
+26.6%
16.7%US$35.00US$25.00n/a2
Feb ’25US$26.36
US$32.25
+22.3%
14.7%US$37.00US$27.50n/a2
Jan ’25US$28.23
US$30.25
+7.2%
22.3%US$37.00US$23.50n/a2
Dec ’24US$25.28
US$30.25
+19.7%
22.3%US$37.00US$23.50n/a2
Nov ’24US$22.55
US$30.25
+34.1%
22.3%US$37.00US$23.50US$23.592
Oct ’24US$24.52
US$30.25
+23.4%
22.3%US$37.00US$23.50US$25.152
Sep ’24US$25.08
US$30.25
+20.6%
22.3%US$37.00US$23.50US$25.492
Aug ’24US$23.50
US$30.25
+28.7%
22.3%US$37.00US$23.50US$25.302
Jul ’24US$23.17
US$33.50
+44.6%
10.4%US$37.00US$30.00US$22.482
Jun ’24US$21.79
US$33.50
+53.7%
10.4%US$37.00US$30.00US$23.532
May ’24US$23.80
US$36.00
+51.3%
16.7%US$42.00US$30.00US$24.052
Apr ’24US$26.24
US$33.33
+27.0%
18.5%US$42.00US$28.00US$23.693
Mar ’24US$28.47
US$33.33
+17.1%
18.5%US$42.00US$28.00US$24.383
Feb ’24US$30.91
US$33.67
+8.9%
17.5%US$42.00US$29.00US$26.363
Jan ’24US$28.25
US$33.67
+19.2%
17.5%US$42.00US$29.00US$28.233
Dec ’23US$28.81
US$33.67
+16.9%
17.5%US$42.00US$29.00US$25.283
Nov ’23US$27.35
US$34.33
+25.5%
19.9%US$44.00US$29.00US$22.553

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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