As of December 15, 2025, AMREP Corp's estimated intrinsic value ranges from $26.61 to $38.05 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $38.05 | +88.7% |
| Discounted Cash Flow (5Y) | $34.87 | +73.0% |
| Dividend Discount Model (Multi-Stage) | $26.61 | +32.0% |
| Dividend Discount Model (Stable) | $36.58 | +81.4% |
| Earnings Power Value | $27.16 | +34.7% |
Is AMREP Corp (AXR) undervalued or overvalued?
With the current market price at $20.16, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate AMREP Corp'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.74 | 0.88 |
| Cost of equity | 7.3% | 9.8% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 23.8% | 26.2% |
| Debt/Equity ratio | 0 | 0 |
| After-tax WACC | 7.3% | 9.8% |
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 | $35 | $136M | 70.0% |
| 10-Year Growth | $38 | $153M | 53.5% |
| 5-Year EBITDA | $34 | $131M | 68.8% |
| 10-Year EBITDA | $37 | $150M | 52.4% |
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 | $8M |
| Discount Rate (WACC) | 9.8% - 7.3% |
| Enterprise Value | $81M - $110M |
| Net Debt | $(49)M |
| Equity Value | $130M - $158M |
| Outstanding Shares | 5M |
| Fair Value | $24 - $30 |
| Selected Fair Value | $27.16 |
| Metric | Value |
|---|---|
| Market Capitalization | $107M |
| Enterprise Value | $58M |
| Trailing P/E | 8.02 |
| Forward P/E | 10.80 |
| Trailing EV/EBITDA | 8.05 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.00 |
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% | $11.41 |
| Discounted Cash Flow (5Y) | 25% | $8.72 |
| Dividend Discount Model (Multi-Stage) | 20% | $5.32 |
| Dividend Discount Model (Stable) | 15% | $5.49 |
| Earnings Power Value | 10% | $2.72 |
| Weighted Average | 100% | $33.66 |
Based on our comprehensive valuation analysis, AMREP Corp's intrinsic value is $33.66, which is approximately 66.9% above the current market price of $20.16.
Key investment considerations:
Given these factors, we believe AMREP Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.