Assessing Healthpeak Properties (DOC) Valuation as Shares Recover Modestly from Recent Lows

Healthpeak Properties (DOC) shares have been moving quietly lately, with performance over the past month showing a slight gain near 4%. Investors may be watching underlying trends as the real estate sector navigates an uncertain market backdrop.

See our latest analysis for Healthpeak Properties.

While Healthpeak Properties' share price has edged up about 4% over the last month, momentum has not yet reversed a more challenging backdrop. The 1-year total shareholder return remains negative at -6.6%. The stock’s short-term gains have done little to offset longer-term underperformance, suggesting investors are still weighing future growth against lingering sector risks.

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With shares still trading below analyst targets and recent growth in revenue and net income, investors are left to wonder if Healthpeak Properties is undervalued now or if the market is already factoring in its future prospects.

Most Popular Narrative: 10.2% Undervalued

Healthpeak Properties' narrative price target sits notably above the last close, raising the prospect of future gains if the assumptions hold. With fundamentals signaling a potential value gap, the narrative's key thesis centers on shifting industry demand and operational catalysts.

The accelerating shift of surgical and specialty care from inpatient hospital settings to outpatient centers, supported by anticipated regulatory changes (CMS inpatient-only default reversal), is set to drive sustained tenant demand and pricing power for Healthpeak's modern, high-acuity outpatient medical buildings. This should translate into increased occupancy rates and same-store NOI growth.

Read the complete narrative.

What’s driving this high-conviction price target? There’s a surprising interplay between industry megatrends, margin expansion, and ambitious financial projections. Want to see which bold numbers put Healthpeak Properties on analysts’ radar? Don’t miss the full breakdown revealing exactly what supports this valuation.

Result: Fair Value of $21.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent credit risks among biotech tenants or sudden shifts in core medical office demand could undermine Healthpeak’s earnings growth and challenge the bullish narrative.

Find out about the key risks to this Healthpeak Properties narrative.

Another View: Multiples Tell a Different Story

Looking at Healthpeak Properties through the lens of its price-to-earnings ratio, the picture is less optimistic. Shares trade at 81.1 times earnings, much higher than peers at 63x, the global Health Care REITs average of 24x, and even the fair ratio of 34.9x. This premium could signal added risk if expectations fall short. So why is the market still pricing it this way?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Healthpeak Properties Narrative

If this narrative doesn’t mirror your own view or you’d rather dive deeper into the numbers yourself, you can shape a custom story in just a few minutes. Create your own with Do it your way.

A great starting point for your Healthpeak Properties research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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