Growthpoint Properties Limited

JSE:GRT Stock Report

Mkt Cap: R48.3b

We’ve recently updated our valuation analysis.

Growthpoint Properties Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 GRT?

Other financial metrics that can be useful for relative valuation.

GRT 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/Revenue9.8x
Enterprise Value/EBITDA14.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GRT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.2x
RDF Redefine Properties
3.1xn/aR27.3b
FFA Fortress Real Estate Investments
27.7xn/aR16.2b
MLI Industrials REIT
8.2x41.6%R8.0b
IPF Investec Property Fund
5.8xn/aR7.8b
GRT Growthpoint Properties
6.1xn/aR48.3b

Price-To-Earnings vs Peers: GRT is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (11.2x).


Price to Earnings Ratio vs Industry

How does GRT's PE Ratio compare vs other companies in the ZA REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.6%
n/an/an/a

Price-To-Earnings vs Industry: GRT is expensive based on its Price-To-Earnings Ratio (6.1x) compared to the ZA REITs industry average (6.1x)


Price to Earnings Ratio vs Fair Ratio

What is GRT'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.

GRT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GRT's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: GRT (ZAR14.15) is trading above our estimate of fair value (ZAR10.5)

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


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 GRT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR14.15
R15.58
+10.1%
9.9%R18.00R14.00n/a4
Jan ’24R14.54
R15.58
+7.1%
9.9%R18.00R14.00n/a4
Dec ’23R13.45
R15.43
+14.7%
10.0%R18.00R14.00n/a4
Nov ’23R12.86
R15.43
+19.9%
10.0%R18.00R14.00n/a4
Oct ’23R11.79
R15.60
+32.3%
9.4%R18.00R14.00n/a4
Sep ’23R12.63
R15.60
+23.5%
9.4%R18.00R14.00n/a4
Aug ’23R13.47
R15.60
+15.8%
9.4%R18.00R14.00n/a4
Jul ’23R12.15
R15.60
+28.4%
9.4%R18.00R14.00n/a4
Jun ’23R13.98
R15.60
+11.6%
9.4%R18.00R14.00n/a4
May ’23R14.12
R15.60
+10.5%
9.4%R18.00R14.00n/a4
Apr ’23R14.65
R15.48
+5.6%
9.8%R18.00R14.00n/a4
Mar ’23R13.47
R15.20
+12.8%
10.8%R18.00R14.00n/a4
Feb ’23R14.67
R15.52
+5.8%
11.8%R18.00R14.00n/a5
Jan ’23R15.37
R15.52
+1.0%
11.8%R18.00R14.00R14.545
Dec ’22R13.59
R14.90
+9.6%
10.1%R17.50R14.00R13.454
Nov ’22R12.96
R14.93
+15.2%
11.0%R17.50R13.00R12.864
Oct ’22R14.10
R14.55
+3.2%
11.4%R17.50R13.00R11.795
Sep ’22R15.50
R14.41
-7.0%
9.8%R16.80R13.00R12.635
Aug ’22R14.75
R14.41
-2.3%
9.8%R16.80R13.00R13.475
Jul ’22R15.00
R15.26
+1.7%
15.0%R19.50R13.00R12.156
Jun ’22R14.67
R15.16
+3.3%
14.7%R19.50R13.00R13.986
May ’22R14.52
R15.16
+4.4%
14.7%R19.50R13.00R14.126
Apr ’22R13.15
R15.14
+15.2%
13.7%R19.00R13.00R14.656
Mar ’22R13.82
R14.80
+7.1%
15.8%R19.00R12.45R13.476
Feb ’22R12.11
R14.67
+21.1%
14.4%R18.20R12.45R14.676
Jan ’22R12.57
R14.72
+17.1%
14.0%R18.20R12.74R15.376

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


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