Equites Property Fund Limited

JSE:EQU Stock Report

Market Cap: R11.1b

Equites Property Fund Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 EQU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EQU (ZAR14.4) is trading below our estimate of fair value (ZAR30.55)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EQU. This is calculated by dividing EQU's market cap by their current earnings.
What is EQU's PE Ratio?
PE Ratio12.3x
EarningsR917.02m
Market CapR11.15b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EQU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.2x
HYP Hyprop Investments
6.4xn/aR16.0b
SSS Stor-Age Property REIT
6.2xn/aR7.5b
ATT Attacq
10xn/aR9.5b
SAC SA Real Estate
6.1xn/aR7.3b
EQU Equites Property Fund
12.3xn/aR11.2b

Price-To-Earnings vs Peers: EQU is expensive based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (7.2x).

Price to Earnings Ratio vs Industry

How does EQU's PE Ratio compare vs other companies in the Global Industrial REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EQU 12.3xIndustry Avg. 20.1xNo. of Companies10PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EQU is good value based on its Price-To-Earnings Ratio (12.3x) compared to the Global Industrial REITs industry average (20.1x).

Price to Earnings Ratio vs Fair Ratio

What is EQU'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.

EQU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EQU'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 EQU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR14.40
R12.25
-14.9%
18.4%R14.50R10.00n/a2
Nov ’25R14.09
R12.25
-13.1%
18.4%R14.50R10.00n/a2
Aug ’25R13.13
R12.30
-6.3%
13.8%R14.00R10.60n/a2
Jul ’25R12.67
R12.30
-2.9%
13.8%R14.00R10.60n/a2
Jun ’25R12.97
R12.00
-7.5%
8.3%R13.00R11.00n/a2
May ’25R12.40
R12.00
-3.2%
8.3%R13.00R11.00n/a2
Apr ’25R12.76
R12.25
-4.0%
10.2%R13.50R11.00n/a2
Mar ’25R12.95
R12.25
-5.4%
10.2%R13.50R11.00n/a2
Feb ’25R14.02
R12.35
-11.9%
10.9%R13.70R11.00n/a2
Jan ’25R13.95
R11.85
-15.1%
15.6%R13.70R10.00n/a2
Dec ’24R11.67
R11.55
-1.0%
13.4%R13.10R10.00n/a2
Nov ’24R11.66
R11.80
+1.2%
15.3%R13.60R10.00R14.092
Oct ’24R12.59
R12.05
-4.3%
12.9%R13.60R10.50R14.342
Sep ’24R12.54
R12.05
-3.9%
12.9%R13.60R10.50R13.602
Aug ’24R11.41
R12.05
+5.6%
12.9%R13.60R10.50R13.132
Jul ’24R11.54
R12.05
+4.4%
12.9%R13.60R10.50R12.672
Jun ’24R11.95
R14.55
+21.8%
27.8%R18.60R10.50R12.972
May ’24R15.60
R16.05
+2.9%
15.9%R18.60R13.50R12.402
Apr ’24R15.37
R16.25
+5.7%
16.9%R19.00R13.50R12.762
Mar ’24R15.25
R17.50
+14.8%
16.3%R20.00R13.50R12.953
Feb ’24R15.98
R17.37
+8.7%
16.1%R20.00R13.50R14.023
Jan ’24R16.84
R17.37
+3.1%
16.1%R20.00R13.50R13.953
Dec ’23R16.30
R17.50
+7.4%
16.3%R20.00R13.50R11.673
Nov ’23R15.64
R17.50
+11.9%
16.3%R20.00R13.50R11.663

Analyst Forecast: Target price is lower than the current share price.

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