Hudson Pacific Properties, Inc.

NYSE:HPP Stock Report

Market Cap: US$523.9m

Hudson Pacific Properties Valuation

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

Below Fair Value: HPP ($3.85) is trading below our estimate of fair value ($12.84)

Significantly Below Fair Value: HPP 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?

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

The above table shows the Price to Sales ratio for HPP. This is calculated by dividing HPP's market cap by their current revenue.
What is HPP's PS Ratio?
PS Ratio0.6x
SalesUS$847.71m
Market CapUS$523.89m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HPP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.7x
NLOP Net Lease Office Properties
3xn/aUS$463.4m
PSTL Postal Realty Trust
4.6x10.1%US$397.7m
PKST Peakstone Realty Trust
2.1x4.9%US$484.6m
CIO City Office REIT
1.3x1.2%US$226.1m
HPP Hudson Pacific Properties
0.6x3.6%US$523.9m

Price-To-Sales vs Peers: HPP 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's PS Ratio compare vs other companies in the US Office REITs Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
KBSR KBS Real Estate Investment Trust III
0.4xn/aUS$102.10m
OPI Office Properties Income Trust
0.2x-6.3%US$95.94m
CMCT Creative Media & Community Trust
0.2xn/aUS$20.86m
No more companies available in this PS range
HPP 0.6xIndustry Avg. 3.0xNo. of Companies3PS01.63.24.86.48+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HPP 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'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 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: HPP is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

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 HPP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.85
US$5.20
+35.1%
37.1%US$11.00US$3.70n/a11
Nov ’25US$4.11
US$5.59
+36.0%
32.3%US$11.00US$4.00n/a11
Oct ’25US$4.68
US$5.98
+27.7%
31.4%US$11.00US$4.25n/a11
Sep ’25US$5.15
US$5.95
+15.6%
30.7%US$11.00US$4.00n/a12
Aug ’25US$5.81
US$6.56
+12.9%
26.8%US$11.00US$4.25n/a13
Jul ’25US$4.70
US$6.88
+46.5%
24.7%US$11.00US$4.50n/a13
Jun ’25US$4.91
US$7.15
+45.7%
28.0%US$11.00US$4.50n/a13
May ’25US$5.69
US$7.97
+40.1%
24.2%US$11.00US$5.00n/a13
Apr ’25US$6.35
US$8.28
+30.4%
29.8%US$13.00US$5.00n/a13
Mar ’25US$6.25
US$9.15
+46.3%
28.4%US$13.00US$5.00n/a12
Feb ’25US$7.99
US$9.52
+19.2%
27.3%US$13.00US$5.00n/a12
Jan ’25US$9.31
US$8.30
-10.8%
34.1%US$13.00US$4.50n/a12
Dec ’24US$6.71
US$6.77
+0.9%
30.7%US$11.00US$4.00n/a12
Nov ’24US$4.49
US$6.96
+55.0%
29.5%US$11.00US$4.00US$4.1112
Oct ’24US$6.65
US$7.23
+8.7%
31.3%US$11.00US$4.00US$4.6811
Sep ’24US$7.02
US$6.15
-12.4%
25.5%US$10.00US$4.00US$5.1510
Aug ’24US$5.59
US$5.65
+1.1%
30.2%US$10.00US$4.00US$5.8110
Jul ’24US$4.22
US$5.61
+32.8%
30.8%US$10.00US$4.00US$4.7010
Jun ’24US$4.58
US$6.28
+37.1%
33.1%US$10.00US$4.00US$4.9111
May ’24US$5.38
US$7.14
+32.6%
22.0%US$10.00US$5.00US$5.6911
Apr ’24US$6.65
US$7.75
+16.5%
20.7%US$10.00US$5.50US$6.3512
Mar ’24US$9.16
US$10.41
+13.6%
9.3%US$12.00US$8.50US$6.2511
Feb ’24US$11.44
US$10.46
-8.6%
10.6%US$12.00US$8.50US$7.9912
Jan ’24US$9.73
US$11.58
+19.0%
9.6%US$13.00US$10.00US$9.3112
Dec ’23US$11.46
US$12.08
+5.4%
10.4%US$15.00US$10.00US$6.7112
Nov ’23US$11.10
US$12.79
+15.2%
10.0%US$15.00US$10.50US$4.4912

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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