CareTrust REIT Valuation

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

Below Fair Value: CTRE ($24.19) is trading below our estimate of fair value ($43.25)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CTRE 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/Revenue16.4x
Enterprise Value/EBITDA19.2x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CTRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.7x
DOC Physicians Realty Trust
64x14.9%US$2.8b
NHI National Health Investors
19.8x5.0%US$2.7b
LTC LTC Properties
15.7x-3.3%US$1.4b
OHI Omega Healthcare Investors
31.5x12.8%US$7.8b
CTRE CareTrust REIT
61.2x30.0%US$3.3b

Price-To-Earnings vs Peers: CTRE is expensive based on its Price-To-Earnings Ratio (61.2x) compared to the peer average (34.7x).


Price to Earnings Ratio vs Industry

How does CTRE's PE Ratio compare vs other companies in the Global Health Care REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CTRE is expensive based on its Price-To-Earnings Ratio (61.2x) compared to the Global Health Care REITs industry average (31.7x).


Price to Earnings Ratio vs Fair Ratio

What is CTRE'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.

CTRE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio61.2x
Fair PE Ratio42.7x

Price-To-Earnings vs Fair Ratio: CTRE is expensive based on its Price-To-Earnings Ratio (61.2x) compared to the estimated Fair Price-To-Earnings Ratio (42.7x).


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 CTRE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$24.19
US$25.00
+3.3%
4.9%US$27.00US$23.00n/a8
Mar ’25US$22.80
US$24.67
+8.2%
5.4%US$27.00US$23.00n/a9
Feb ’25US$20.98
US$24.56
+17.0%
4.7%US$26.00US$23.00n/a9
Jan ’25US$22.38
US$24.38
+8.9%
6.1%US$26.00US$22.00n/a8
Dec ’24US$22.88
US$23.78
+3.9%
6.8%US$26.00US$21.00n/a9
Nov ’24US$21.99
US$23.00
+4.6%
4.6%US$24.00US$21.00n/a9
Oct ’24US$20.50
US$22.60
+10.2%
5.7%US$24.00US$20.00n/a10
Sep ’24US$20.46
US$22.11
+8.1%
7.8%US$24.00US$19.00n/a9
Aug ’24US$20.57
US$21.89
+6.4%
7.3%US$24.00US$19.00n/a9
Jul ’24US$19.86
US$21.75
+9.5%
7.5%US$24.00US$19.00n/a8
Jun ’24US$19.35
US$21.38
+10.5%
8.7%US$24.00US$19.00n/a8
May ’24US$19.35
US$21.38
+10.5%
8.7%US$24.00US$19.00n/a8
Apr ’24US$19.58
US$21.67
+10.7%
9.5%US$24.00US$19.00n/a6
Mar ’24US$19.51
US$21.50
+10.2%
8.7%US$24.00US$19.00US$22.808
Feb ’24US$20.63
US$21.11
+2.3%
8.5%US$24.00US$19.00US$20.989
Jan ’24US$18.58
US$20.89
+12.4%
9.7%US$24.00US$18.00US$22.389
Dec ’23US$19.88
US$20.83
+4.8%
9.3%US$24.00US$18.00US$22.889
Nov ’23US$18.56
US$20.67
+11.4%
10.0%US$24.00US$18.00US$21.999
Oct ’23US$18.11
US$22.25
+22.9%
7.6%US$24.00US$19.00US$20.5010
Sep ’23US$21.23
US$22.35
+5.3%
7.6%US$24.00US$19.00US$20.4610
Aug ’23US$21.06
US$20.75
-1.5%
9.5%US$24.00US$17.00US$20.5710
Jul ’23US$19.05
US$20.85
+9.4%
10.3%US$24.00US$17.00US$19.8610
Jun ’23US$18.60
US$21.33
+14.7%
10.1%US$24.00US$17.00US$19.359
May ’23US$16.21
US$21.33
+31.6%
10.1%US$24.00US$17.00US$19.359
Apr ’23US$19.87
US$22.11
+11.3%
8.1%US$25.00US$19.00US$19.589
Mar ’23US$17.12
US$22.80
+33.2%
11.2%US$27.00US$19.00US$19.5110

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


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