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Washington Real Estate Investment Trust (NYSE:WRE), which is in the reits business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $29.49 and falling to the lows of $26.25. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Washington Real Estate Investment Trust’s current trading price of $28.28 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Washington Real Estate Investment Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Washington Real Estate Investment Trust worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 17% below my intrinsic value, which means if you buy Washington Real Estate Investment Trust today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $33.89, then there’s not much of an upside to gain from mispricing. What’s more, Washington Real Estate Investment Trust’s share price may be more stable over time (relative to the market), as indicated by its low beta.
Can we expect growth from Washington Real Estate Investment Trust?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Washington Real Estate Investment Trust’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has already priced in WRE’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on WRE, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Washington Real Estate Investment Trust. You can find everything you need to know about Washington Real Estate Investment Trust in the latest infographic research report. If you are no longer interested in Washington Real Estate Investment Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.