Vornado Realty Trust Valuation

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

VNO.PRM ($18.22) is trading above our estimate of [[fair value]] ($17.31)

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

Below Fair Value: VNO.PRM ($18.22) is trading above our estimate of fair value ($17.31)

Significantly Below Fair Value: VNO.PRM is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VNO.PRM?

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

The above table shows the Price to Sales ratio for VNO.PRM. This is calculated by dividing VNO.PRM's market cap by their current revenue.
What is VNO.PRM's PS Ratio?
PS Ratio	4.5x
Sales	US$1.87b
Market Cap	US$8.89b

VNO.PRM 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	9.9x
Enterprise Value/EBITDA	23.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does VNO.PRM's PS Ratio compare to its peers?

The above table shows the PS ratio for VNO.PRM 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	4.9x
SLG SL Green Realty	5.7x	-8.7%	US$5.5b
BXP BXP	3.8x	2.9%	US$14.1b
CUZ Cousins Properties	5.9x	4.0%	US$4.9b
KRC Kilroy Realty	4.3x	2.8%	US$4.8b
VNO.PRM Vornado Realty Trust	4.5x	2.9%	US$8.9b

Price-To-Sales vs Peers: VNO.PRM is good value based on its Price-To-Sales Ratio (4.5x) compared to the peer average (4.9x).

Price to Sales Ratio vs Industry

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

3 Companies	Price / Sales	Estimated Growth	Market Cap
KBSR KBS Real Estate Investment Trust III	0.4x	n/a	US$102.10m
OPI Office Properties Income Trust	0.2x	-6.3%	US$88.13m
CMCT Creative Media & Community Trust	0.2x	n/a	US$25.76m

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: VNO.PRM is expensive based on its Price-To-Sales Ratio (4.5x) compared to the US Office REITs industry average (3x).

Price to Sales Ratio vs Fair Ratio

What is VNO.PRM'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.

VNO.PRM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.5x
Fair PS Ratio	4.8x

Price-To-Sales vs Fair Ratio: VNO.PRM is good value based on its Price-To-Sales Ratio (4.5x) compared to the estimated Fair Price-To-Sales Ratio (4.8x).

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.