Fortress Real Estate Investments Limited

JSE:FFA Stock Report

Market Cap: R34.3b

Fortress Real Estate Investments Valuation

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

Below Fair Value: FFA (ZAR15.35) is trading above our estimate of fair value (ZAR10.81)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FFA. This is calculated by dividing FFA's market cap by their current earnings.
What is FFA's PE Ratio?
PE Ratio5.6x
EarningsR5.92b
Market CapR34.32b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FFA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average4.9x
MSP MAS
5.6xn/aR12.7b
NRP NEPI Rockcastle
9.5x6.9%R92.8b
LTE Lighthouse Properties
1.9xn/aR14.2b
ACS Acsion
2.6xn/aR2.7b
FFA Fortress Real Estate Investments
5.6xn/aR34.3b

Price-To-Earnings vs Peers: FFA is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (8.8x).

Price to Earnings Ratio vs Industry

How does FFA's PE Ratio compare vs other companies in the African Real Estate Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FFA 5.6xIndustry Avg. 9.5xNo. of Companies11PE01020304050+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FFA is good value based on its Price-To-Earnings Ratio (5.6x) compared to the African Real Estate industry average (11.6x).

Price to Earnings Ratio vs Fair Ratio

What is FFA'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.

FFA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FFA's Price-To-Earnings 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 FFA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
R16.87
0%
17.4%R21.00R14.60n/a3
Nov ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
Oct ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
Sep ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
Aug ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
Jul ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
Jun ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
May ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
Apr ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
Mar ’25n/a
R16.87
0%
17.4%R21.00R14.60n/a3
Feb ’25R15.27
R16.23
+6.3%
21.2%R21.00R13.00n/a3
Jan ’25R13.81
R15.10
+9.3%
10.4%R16.80R13.00n/a3
Dec ’24R13.75
R15.10
+9.8%
10.4%R16.80R13.00n/a3
Nov ’24R13.15
R15.03
+14.3%
10.4%R16.80R13.00n/a3
Oct ’24R12.87
R15.37
+19.4%
7.4%R16.80R14.00n/a3
Sep ’24R13.16
R15.37
+16.8%
7.4%R16.80R14.00n/a3
Aug ’24R13.01
R14.57
+12.0%
3.7%R15.30R14.00n/a3
Jul ’24R12.86
R14.23
+10.7%
6.6%R15.30R13.00n/a3
Jun ’24R12.95
R14.23
+9.9%
6.6%R15.30R13.00n/a3
May ’24R12.99
R14.23
+9.6%
6.6%R15.30R13.00n/a3
Apr ’24R11.61
R13.33
+14.8%
9.8%R14.40R11.50n/a3
Mar ’24R10.50
R13.20
+25.7%
9.1%R14.10R11.50n/a3
Feb ’24R10.06
R12.60
+25.2%
8.7%R13.70R11.50R15.272
Jan ’24R10.51
R12.60
+19.9%
8.7%R13.70R11.50R13.812
Dec ’23R10.29
R12.25
+19.0%
6.1%R13.00R11.50R13.752
Nov ’23R10.26
R11.25
+9.6%
15.6%R13.00R9.50R13.152

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

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