Hudson Pacific Properties Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: HPP.PRC ($13.86) is trading below our estimate of fair value ($53.61)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HPP.PRC?

Key metric: As HPP.PRC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HPP.PRC. This is calculated by dividing HPP.PRC's market cap by their current revenue.
What is HPP.PRC's PS Ratio?
PS Ratio	0.6x
Sales	US$847.71m
Market Cap	US$480.47m

HPP.PRC 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	6.7x
Enterprise Value/EBITDA	20.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does HPP.PRC's PS Ratio compare to its peers?

The above table shows the PS ratio for HPP.PRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.7x
NLOP Net Lease Office Properties	2.9x	n/a	US$459.8m
PSTL Postal Realty Trust	4.5x	10.1%	US$394.3m
PKST Peakstone Realty Trust	2x	4.9%	US$477.3m
CIO City Office REIT	1.2x	1.2%	US$208.0m
HPP.PRC Hudson Pacific Properties	0.6x	3.6%	US$480.5m

Price-To-Sales vs Peers: HPP.PRC is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (2.7x).

Price to Sales Ratio vs Industry

How does HPP.PRC's PS Ratio compare vs other companies in the US Office REITs Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
OPI Office Properties Income Trust	0.1x	-4.9%	US$63.59m
CMCT Creative Media & Community Trust	0.2x	n/a	US$19.46m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: HPP.PRC is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Office REITs industry average (3x).

Price to Sales Ratio vs Fair Ratio

What is HPP.PRC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HPP.PRC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.6x
Fair PS Ratio	1.9x

Price-To-Sales vs Fair Ratio: HPP.PRC is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).

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.

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