American Homes 4 Rent Valuation

Is AMH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: AMH ($36.35) is trading below our estimate of fair value ($48.25)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AMH 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/Revenue11.2x
Enterprise Value/EBITDA22.4x
PEG Ratio-3.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AMH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.6x
ELS Equity LifeStyle Properties
35.1x4.5%US$12.6b
INVH Invitation Homes
40.1x0.1%US$21.8b
UDR UDR
29.7x-34.3%US$14.7b
MAA Mid-America Apartment Communities
29.6x-2.6%US$16.9b
AMH American Homes 4 Rent
37.3x-9.9%US$15.2b

Price-To-Earnings vs Peers: AMH is expensive based on its Price-To-Earnings Ratio (37.3x) compared to the peer average (33.6x).


Price to Earnings Ratio vs Industry

How does AMH's PE Ratio compare vs other companies in the Global Residential REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-4.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-4.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AMH is expensive based on its Price-To-Earnings Ratio (37.3x) compared to the Global Residential REITs industry average (23.6x).


Price to Earnings Ratio vs Fair Ratio

What is AMH'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.

AMH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.3x
Fair PE Ratio28.8x

Price-To-Earnings vs Fair Ratio: AMH is expensive based on its Price-To-Earnings Ratio (37.3x) compared to the estimated Fair Price-To-Earnings Ratio (28.8x).


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 AMH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$36.35
US$39.95
+9.9%
4.3%US$42.00US$36.00n/a19
Jun ’25US$36.04
US$39.89
+10.7%
4.5%US$42.00US$36.00n/a19
May ’25US$35.93
US$39.76
+10.7%
4.8%US$43.00US$36.00n/a19
Apr ’25US$36.34
US$39.71
+9.3%
4.9%US$43.00US$36.00n/a19
Mar ’25US$36.79
US$39.11
+6.3%
5.3%US$43.00US$36.00n/a19
Feb ’25US$35.73
US$39.28
+9.9%
5.6%US$44.00US$36.00n/a18
Jan ’25US$35.96
US$38.53
+7.1%
6.2%US$44.00US$35.00n/a17
Dec ’24US$36.98
US$37.71
+2.0%
5.4%US$43.00US$34.00n/a17
Nov ’24US$32.92
US$37.59
+14.2%
5.2%US$43.00US$35.00n/a17
Oct ’24US$33.69
US$38.35
+13.8%
5.7%US$43.00US$35.00n/a17
Sep ’24US$35.98
US$38.76
+7.7%
5.6%US$43.00US$36.00n/a17
Aug ’24US$37.28
US$37.66
+1.0%
6.1%US$43.00US$34.50n/a16
Jul ’24US$35.45
US$37.03
+4.5%
6.8%US$43.00US$33.00n/a16
Jun ’24US$34.73
US$36.58
+5.3%
9.6%US$43.00US$30.00US$36.0418
May ’24US$33.55
US$34.76
+3.6%
7.3%US$39.00US$30.00US$35.9319
Apr ’24US$31.45
US$34.55
+9.9%
7.0%US$38.00US$30.00US$36.3419
Mar ’24US$30.36
US$34.87
+14.8%
6.7%US$38.00US$30.00US$36.7919
Feb ’24US$34.68
US$35.48
+2.3%
8.7%US$42.00US$30.00US$35.7320
Jan ’24US$30.14
US$36.08
+19.7%
7.8%US$42.00US$31.00US$35.9619
Dec ’23US$32.95
US$37.85
+14.9%
11.8%US$53.00US$33.00US$36.9820
Nov ’23US$31.92
US$40.58
+27.1%
11.1%US$53.00US$35.00US$32.9219
Oct ’23US$32.81
US$42.37
+29.1%
9.6%US$53.00US$35.00US$33.6919
Sep ’23US$35.40
US$42.68
+20.6%
9.2%US$53.00US$35.00US$35.9819
Aug ’23US$37.34
US$41.83
+12.0%
9.8%US$53.00US$35.00US$37.2820
Jul ’23US$35.55
US$43.06
+21.1%
9.4%US$53.00US$36.00US$35.4518
Jun ’23US$37.43
US$44.72
+19.5%
7.4%US$53.00US$39.00US$34.7318

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


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