Sun Communities Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: SUI ($126.26) is trading below our estimate of fair value ($189.74)

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


Key Valuation Metric

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

Key metric: As SUI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SUI. This is calculated by dividing SUI's market cap by their current earnings.
What is SUI's PE Ratio?
PE Ratio69.6x
EarningsUS$231.20m
Market CapUS$16.50b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SUI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average71.7x
AMH American Homes 4 Rent
39.6x-6.2%US$15.8b
ELS Equity LifeStyle Properties
37.2x5.2%US$14.2b
INVH Invitation Homes
47x5.6%US$20.9b
UMH UMH Properties
162.9x53.1%US$1.5b
SUI Sun Communities
69.6x5.7%US$16.5b

Price-To-Earnings vs Peers: SUI is good value based on its Price-To-Earnings Ratio (69.6x) compared to the peer average (71.7x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SUI 69.6xIndustry Avg. 26.7xNo. of Companies9PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SUI is expensive based on its Price-To-Earnings Ratio (69.6x) compared to the Global Residential REITs industry average (26.6x).


Price to Earnings Ratio vs Fair Ratio

What is SUI'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.

SUI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio69.6x
Fair PE Ratio37.6x

Price-To-Earnings vs Fair Ratio: SUI is expensive based on its Price-To-Earnings Ratio (69.6x) compared to the estimated Fair Price-To-Earnings Ratio (37.6x).


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 SUI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$126.26
US$138.73
+9.9%
12.0%US$172.00US$110.00n/a15
Nov ’25US$130.31
US$148.40
+13.9%
8.1%US$172.00US$120.00n/a15
Oct ’25US$133.74
US$146.29
+9.4%
8.3%US$172.00US$120.00n/a14
Sep ’25US$135.24
US$143.00
+5.7%
9.3%US$172.00US$120.00n/a14
Aug ’25US$133.20
US$139.36
+4.6%
10.4%US$172.00US$120.00n/a14
Jul ’25US$118.76
US$138.87
+16.9%
11.2%US$172.00US$117.00n/a15
Jun ’25US$117.99
US$138.87
+17.7%
11.2%US$172.00US$117.00n/a15
May ’25US$112.78
US$142.07
+26.0%
10.6%US$172.00US$117.00n/a15
Apr ’25US$125.44
US$145.47
+16.0%
9.1%US$172.00US$123.00n/a15
Mar ’25US$132.74
US$145.13
+9.3%
9.6%US$170.00US$116.00n/a15
Feb ’25US$129.39
US$145.27
+12.3%
9.6%US$170.00US$116.00n/a15
Jan ’25US$133.65
US$143.93
+7.7%
10.2%US$170.00US$116.00n/a14
Dec ’24US$132.67
US$139.93
+5.5%
11.0%US$173.00US$116.00n/a14
Nov ’24US$113.49
US$137.36
+21.0%
13.1%US$173.00US$110.00US$130.3114
Oct ’24US$118.34
US$150.23
+26.9%
6.6%US$173.00US$129.00US$133.7413
Sep ’24US$121.97
US$151.54
+24.2%
5.4%US$173.00US$139.00US$135.2413
Aug ’24US$129.92
US$153.00
+17.8%
5.5%US$173.00US$139.00US$133.2013
Jul ’24US$130.46
US$158.42
+21.4%
5.5%US$173.00US$140.00US$118.7612
Jun ’24US$128.06
US$158.55
+23.8%
4.9%US$169.00US$140.00US$117.9911
May ’24US$139.18
US$160.64
+15.4%
3.7%US$169.00US$151.00US$112.7811
Apr ’24US$140.88
US$163.73
+16.2%
5.8%US$185.00US$151.00US$125.4411
Mar ’24US$138.97
US$166.60
+19.9%
5.8%US$185.00US$155.00US$132.7410
Feb ’24US$157.99
US$164.90
+4.4%
5.5%US$185.00US$152.00US$129.3910
Jan ’24US$143.00
US$163.10
+14.1%
5.2%US$185.00US$153.00US$133.6510
Dec ’23US$147.10
US$162.90
+10.7%
5.2%US$185.00US$153.00US$132.6710
Nov ’23US$134.38
US$161.30
+20.0%
6.6%US$185.00US$147.00US$113.4910

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


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