European Residential Real Estate Investment Trust

OTCPK:EREU.F Stock Report

Market Cap: US$241.5m

European Residential Real Estate Investment Trust Valuation

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

Below Fair Value: EREU.F ($2.61) is trading above our estimate of fair value ($0.67)

Significantly Below Fair Value: EREU.F is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EREU.F?

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

The above table shows the Price to Sales ratio for EREU.F. This is calculated by dividing EREU.F's market cap by their current revenue.
What is EREU.F's PS Ratio?
PS Ratio2.4x
Sales€97.04m
Market Cap€228.84m

Price to Sales Ratio vs Peers

How does EREU.F's PS Ratio compare to its peers?

The above table shows the PS ratio for EREU.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.5x
CLPR Clipper Realty
0.5x11.4%US$213.2m
BRT BRT Apartments
4x4.1%US$391.8m
NXRT NexPoint Residential Trust
4.6x2.3%US$1.2b
CSR Centerspace
4.7x4.1%US$1.3b
EREU.F European Residential Real Estate Investment Trust
2.4x-34.9%US$338.6m

Price-To-Sales vs Peers: EREU.F is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (3.5x).

Price to Sales Ratio vs Industry

How does EREU.F's PS Ratio compare vs other companies in the US Residential REITs Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
CLPR Clipper Realty
0.5x11.4%US$213.25m
No more companies available in this PS range
EREU.F 2.4xIndustry Avg. 6.1xNo. of Companies4PS03.67.210.814.418+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: EREU.F is good value based on its Price-To-Sales Ratio (2.4x) compared to the North American Residential REITs industry average (6.1x).

Price to Sales Ratio vs Fair Ratio

What is EREU.F'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.

EREU.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate EREU.F's Price-To-Sales Fair Ratio for valuation analysis.

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 EREU.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$2.76
0%
14.1%US$3.22US$2.15n/a8
Nov ’25US$2.18
US$2.66
+21.8%
10.9%US$2.93US$2.20n/a8
Oct ’25US$2.43
US$2.59
+6.7%
10.9%US$2.94US$2.20n/a8
Sep ’25n/a
US$2.46
0%
8.3%US$2.91US$2.18n/a8
Aug ’25US$1.90
US$2.31
+21.5%
11.8%US$2.93US$2.01n/a8
Jul ’25US$1.73
US$2.25
+30.0%
13.6%US$2.93US$2.01n/a7
Jun ’25n/a
US$2.24
0%
12.7%US$2.92US$2.01n/a8
May ’25n/a
US$2.31
0%
12.5%US$2.93US$2.01n/a8
Apr ’25n/a
US$2.34
0%
12.5%US$2.96US$2.04n/a8
Mar ’25n/a
US$2.34
0%
12.5%US$2.96US$2.04n/a8
Feb ’25n/a
US$2.38
0%
11.4%US$3.00US$2.06n/a9
Jan ’25n/a
US$2.32
0%
11.5%US$2.90US$1.99n/a10
Dec ’24n/a
US$2.32
0%
11.5%US$2.90US$1.99n/a10
Nov ’24n/a
US$2.51
0%
11.7%US$3.00US$1.99US$2.1810
Oct ’24n/a
US$2.67
0%
8.1%US$3.08US$2.22US$2.4312
Sep ’24n/a
US$2.70
0%
8.1%US$3.09US$2.24n/a12
Aug ’24n/a
US$2.97
0%
10.5%US$3.41US$2.20US$1.9012
Jul ’24n/a
US$3.00
0%
9.6%US$3.53US$2.49US$1.7312
Jun ’24n/a
US$3.00
0%
9.6%US$3.53US$2.49n/a12
May ’24n/a
US$3.19
0%
9.7%US$3.64US$2.70n/a12
Apr ’24n/a
US$3.19
0%
9.7%US$3.64US$2.70n/a12
Mar ’24n/a
US$3.26
0%
10.0%US$3.71US$2.75n/a11
Feb ’24n/a
US$3.27
0%
10.0%US$3.73US$2.76n/a11
Jan ’24n/a
US$3.28
0%
11.0%US$3.77US$2.60n/a11
Dec ’23n/a
US$3.28
0%
11.0%US$3.77US$2.60n/a11
Nov ’23n/a
US$3.46
0%
12.7%US$4.06US$2.43n/a11

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

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