We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RMR 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/Revenue2.6x
Enterprise Value/EBITDA5.2x
PEG Ratio2.9x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.8x
TRC Tejon Ranch
30.9xn/aUS$530.5m
SYT SYLA Technologies
71.9xn/aUS$206.6m
JOE St. Joe
36.8xn/aUS$2.7b
BBXI.A BBX Capital
7.7xn/aUS$137.6m
RMR RMR Group
15.3x5.2%US$968.7m

Price-To-Earnings vs Peers: RMR is good value based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (36.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a38.8%
n/an/an/a

Price-To-Earnings vs Industry: RMR is expensive based on its Price-To-Earnings Ratio (15.3x) compared to the US Real Estate industry average (12x)


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 Ratio15.3x
Fair PE Ratio24.9x

Price-To-Earnings vs Fair Ratio: RMR is good value based on its Price-To-Earnings Ratio (15.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).


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 ($31.02) is trading below our estimate of fair value ($66.92)

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


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$31.02
US$33.67
+8.5%
17.5%US$42.00US$29.00n/a3
Jan ’24US$28.25
US$33.67
+19.2%
17.5%US$42.00US$29.00n/a3
Dec ’23US$28.81
US$33.67
+16.9%
17.5%US$42.00US$29.00n/a3
Nov ’23US$27.35
US$34.33
+25.5%
19.9%US$44.00US$29.00n/a3
Oct ’23US$23.69
US$35.33
+49.1%
17.5%US$44.00US$30.00n/a3
Sep ’23US$26.43
US$35.33
+33.7%
17.5%US$44.00US$30.00n/a3
Aug ’23US$28.62
US$36.00
+25.8%
15.7%US$44.00US$32.00n/a3
Jul ’23US$28.94
US$36.00
+24.4%
15.7%US$44.00US$32.00n/a3
Jun ’23US$29.34
US$36.00
+22.7%
15.7%US$44.00US$32.00n/a3
May ’23US$27.28
US$35.50
+30.1%
11.5%US$42.00US$32.00n/a4
Apr ’23US$31.38
US$37.00
+17.9%
11.0%US$42.00US$31.00n/a4
Mar ’23US$29.05
US$37.00
+27.4%
11.0%US$42.00US$31.00n/a4
Feb ’23US$31.85
US$38.50
+20.9%
6.4%US$42.00US$35.50US$31.025
Jan ’23US$34.68
US$39.40
+13.6%
9.7%US$44.00US$35.00US$28.255
Dec ’22US$33.05
US$39.50
+19.5%
8.9%US$44.00US$35.00US$28.816
Nov ’22US$35.13
US$40.60
+15.6%
4.3%US$43.00US$38.00US$27.355
Oct ’22US$34.06
US$41.25
+21.1%
3.1%US$43.00US$40.00US$23.694
Sep ’22US$45.84
US$43.00
-6.2%
5.9%US$47.00US$40.00US$26.434
Aug ’22US$39.24
US$42.60
+8.6%
5.1%US$46.00US$40.00US$28.625
Jul ’22US$39.62
US$42.17
+6.4%
5.2%US$46.00US$40.00US$28.946
Jun ’22US$39.62
US$42.17
+6.4%
5.2%US$46.00US$40.00US$29.346
May ’22US$39.58
US$42.17
+6.5%
5.2%US$46.00US$40.00US$27.286
Apr ’22US$41.40
US$42.00
+1.4%
5.8%US$46.00US$39.00US$31.387
Mar ’22US$40.38
US$42.00
+4.0%
5.8%US$46.00US$39.00US$29.057
Feb ’22US$37.95
US$38.25
+0.8%
11.2%US$45.00US$30.00US$31.857

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


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