As of December 15, 2025, AEW UK REIT PLC's estimated intrinsic value ranges from $69.32 to $158.09 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $96.70 | -9.3% |
| Discounted Cash Flow (5Y) | $90.03 | -15.5% |
| Dividend Discount Model (Multi-Stage) | $158.09 | +48.3% |
| Dividend Discount Model (Stable) | $127.46 | +19.6% |
| Earnings Power Value | $69.32 | -35.0% |
Is AEW UK REIT PLC (AEWU.L) undervalued or overvalued?
With the current market price at $106.60, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate AEW UK REIT PLC's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.48 | 0.53 |
| Cost of equity | 6.9% | 8.7% |
| Cost of debt | 4.0% | 4.9% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.35 | 0.35 |
| After-tax WACC | 5.9% | 7.5% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $90 | $192M | 80.8% |
| 10-Year Growth | $97 | $203M | 64.7% |
| 5-Year EBITDA | $84 | $182M | 79.7% |
| 10-Year EBITDA | $91 | $194M | 63.1% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $10M |
| Discount Rate (WACC) | 7.5% - 5.9% |
| Enterprise Value | $141M - $177M |
| Net Debt | $47M |
| Equity Value | $94M - $130M |
| Outstanding Shares | 2M |
| Fair Value | $58 - $80 |
| Selected Fair Value | $69.32 |
| Metric | Value |
|---|---|
| Market Capitalization | $172M |
| Enterprise Value | $219M |
| Trailing P/E | 13.52 |
| Forward P/E | 10.32 |
| Trailing EV/EBITDA | 14.25 |
| Current Dividend Yield | 751.63% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.35 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $29.01 |
| Discounted Cash Flow (5Y) | 25% | $22.51 |
| Dividend Discount Model (Multi-Stage) | 20% | $31.62 |
| Dividend Discount Model (Stable) | 15% | $19.12 |
| Earnings Power Value | 10% | $6.93 |
| Weighted Average | 100% | $109.19 |
Based on our comprehensive valuation analysis, AEW UK REIT PLC's intrinsic value is $109.19, which is approximately 2.4% above the current market price of $106.60.
Key investment considerations:
Given these factors, we believe AEW UK REIT PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.