We’ve recently updated our valuation analysis.

Welltower Valuation

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

[object Object] Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WELL 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/Revenue8.9x
Enterprise Value/EBITDA23.3x
PEG Ratio4.2x

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for WELL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average7.4x
VTR Ventas
4.6x6.1%US$18.8b
PEAK Healthpeak Properties
7x4.1%US$14.3b
OHI Omega Healthcare Investors
7.2x1.0%US$7.3b
HR Healthcare Realty Trust
10.7x26.0%US$7.8b
WELL Welltower
5.9x9.1%US$33.6b

Price-To-Sales vs Peers: WELL is good value based on its Price-To-Sales Ratio (5.9x) compared to the peer average (7.4x).


Price to Earnings Ratio vs Industry

How does WELL's PE Ratio compare vs other companies in the US REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.6%
n/an/an/a

Price-To-Sales vs Industry: WELL is expensive based on its Price-To-Sales Ratio (5.9x) compared to the US REITs industry average (5x)


Price to Sales Ratio vs Fair Ratio

What is WELL'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.

WELL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.9x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: WELL is expensive based on its Price-To-Sales Ratio (5.9x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).


Share Price vs Fair Value

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

Below Fair Value: WELL ($71.03) is trading below our estimate of fair value ($91.98)

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


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 WELL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.03
US$79.33
+11.7%
13.6%US$111.00US$61.00n/a21
Nov ’23US$60.10
US$79.76
+32.7%
15.2%US$111.00US$61.00n/a21
Oct ’23US$64.32
US$91.00
+41.5%
7.6%US$111.00US$79.00n/a22
Sep ’23US$76.58
US$92.32
+20.6%
7.0%US$111.00US$79.00n/a22
Aug ’23US$85.98
US$94.14
+9.5%
6.9%US$111.00US$79.00n/a21
Jul ’23US$83.21
US$96.05
+15.4%
7.8%US$111.00US$79.00n/a21
Jun ’23US$88.16
US$98.75
+12.0%
7.0%US$111.00US$83.00n/a20
May ’23US$90.81
US$97.90
+7.8%
7.9%US$111.00US$83.00n/a21
Apr ’23US$97.82
US$95.76
-2.1%
7.9%US$111.00US$83.00n/a21
Mar ’23US$82.34
US$93.59
+13.7%
6.5%US$105.00US$81.00n/a22
Feb ’23US$84.66
US$94.34
+11.4%
6.7%US$105.00US$81.00n/a22
Jan ’23US$85.77
US$92.40
+7.7%
9.4%US$105.00US$68.00n/a21
Dec ’22US$79.36
US$92.40
+16.4%
9.6%US$105.00US$68.00US$71.0321
Nov ’22US$82.45
US$91.38
+10.8%
10.0%US$105.00US$68.00US$60.1020
Oct ’22US$83.85
US$91.71
+9.4%
9.3%US$105.00US$68.00US$64.3221
Sep ’22US$88.18
US$89.57
+1.6%
9.4%US$105.00US$68.00US$76.5821
Aug ’22US$86.86
US$85.62
-1.4%
8.3%US$95.00US$68.00US$85.9821
Jul ’22US$83.73
US$82.90
-1.0%
8.8%US$95.00US$68.00US$83.2121
Jun ’22US$76.70
US$76.15
-0.7%
6.4%US$83.00US$67.00US$88.1620
May ’22US$75.03
US$73.30
-2.3%
8.1%US$83.00US$63.00US$90.8120
Apr ’22US$73.25
US$68.95
-5.9%
7.9%US$78.00US$59.00US$97.8220
Mar ’22US$68.48
US$66.48
-2.9%
7.0%US$74.00US$59.00US$82.3420
Feb ’22US$62.51
US$63.88
+2.2%
7.4%US$72.00US$56.00US$84.6620
Jan ’22US$64.62
US$64.71
+0.1%
7.4%US$72.00US$57.00US$85.7719
Dec ’21US$63.49
US$60.97
-4.0%
7.5%US$72.00US$50.00US$79.3618

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


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