New England Realty Associates Limited Partnership Valuation

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

NEN ($82.49) is trading below our estimate of [[fair value]] ($190.61)

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

Below Fair Value: NEN ($82.49) is trading below our estimate of fair value ($190.61)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NEN. This is calculated by dividing NEN's market cap by their current earnings.
What is NEN's PE Ratio?
PE Ratio	21x
Earnings	US$13.75m
Market Cap	US$288.82m

NEN 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	8.4x
Enterprise Value/EBITDA	15.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NEN 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	71.1x
RITR Reitar Logtech Holdings	115.1x	n/a	US$286.0m
TCI Transcontinental Realty Investors	76.1x	n/a	US$240.3m
MNPP Merchants' National Properties	13.8x	n/a	US$155.8m
FRPH FRP Holdings	79.5x	n/a	US$598.1m
NEN New England Realty Associates Limited Partnership	21x	n/a	US$288.8m

Price-To-Earnings vs Peers: NEN is good value based on its Price-To-Earnings Ratio (21x) compared to the peer average (71.1x).

Price to Earnings Ratio vs Industry

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

6 Companies	Price / Earnings	Estimated Growth	Market Cap
STHO Star Holdings	1.8x	n/a	US$148.91m
STSR Strategic Student & Senior Housing Trust	2.5x	n/a	US$41.31m
XIN Xinyuan Real Estate	0.4x	n/a	US$19.70m
ILAL International Land Alliance	2.4x	n/a	US$6.71m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: NEN is good value based on its Price-To-Earnings Ratio (21x) compared to the US Real Estate industry average (32.3x).

Price to Earnings Ratio vs Fair Ratio

What is NEN'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.

NEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NEN's Price-To-Earnings Fair Ratio for valuation analysis.

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.

Discover undervalued companies

Savills

UK£1.4b

Engages in the provision of real estate services in the United Kingdom, Continental Europe, the Asia Pacific, Africa, North America, and the Middle East.

SVLP.F

UK£13.43

n/a

Sun Hung Kai Properties

HK$223.6b

Develops and invests in properties for sale and rent in Hong Kong, Mainland China, and internationally.

SUHJ.Y

HK$9.94

-1.7%

Longfor Group Holdings

HK$77.1b

An investment holding company, engages in the property development, investment, and management businesses in the People’s Republic of China.

LGFR.Y

HK$14.29

-2.1%

-18.0%