As of May 25, 2025, Brixmor Property Group Inc's estimated intrinsic value ranges from $4.66 to $35.09 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $35.09 | +42.4% |
| Discounted Cash Flow (5Y) | $33.25 | +34.9% |
| Dividend Discount Model (Multi-Stage) | $18.86 | -23.5% |
| Dividend Discount Model (Stable) | $31.91 | +29.5% |
| Earnings Power Value | $4.66 | -81.1% |
Is Brixmor Property Group Inc (BRX) undervalued or overvalued?
With the current market price at $24.64, the stock appears to be moderately 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 Brixmor Property Group Inc'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 | 0.78 | 0.81 |
| Cost of equity | 7.4% | 9.4% |
| Cost of debt | 4.0% | 9.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.71 | 0.71 |
| After-tax WACC | 5.6% | 8.3% |
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 | $33 | $15,174M | 86.8% |
| 10-Year Growth | $35 | $15,736M | 75.3% |
| 5-Year EBITDA | $41 | $17,589M | 88.6% |
| 10-Year EBITDA | $42 | $17,963M | 78.4% |
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 | $428M |
| Discount Rate (WACC) | 8.3% - 5.6% |
| Enterprise Value | $5,182M - $7,666M |
| Net Debt | $4,998M |
| Equity Value | $185M - $2,669M |
| Outstanding Shares | 306M |
| Fair Value | $1 - $9 |
| Selected Fair Value | $4.66 |
| Metric | Value |
|---|---|
| Market Capitalization | $7541M |
| Enterprise Value | $12539M |
| Trailing P/E | 18.44 |
| Forward P/E | 27.60 |
| Trailing EV/EBITDA | 16.55 |
| Current Dividend Yield | 446.61% |
| Dividend Growth Rate (5Y) | 18.07% |
| Debt-to-Equity Ratio | 0.71 |
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% | $10.53 |
| Discounted Cash Flow (5Y) | 25% | $8.31 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.77 |
| Dividend Discount Model (Stable) | 15% | $4.79 |
| Earnings Power Value | 10% | $0.47 |
| Weighted Average | 100% | $27.86 |
Based on our comprehensive valuation analysis, Brixmor Property Group Inc's weighted average intrinsic value is $27.86, which is approximately 13.1% above the current market price of $24.64.
Key investment considerations:
Given these factors, we believe Brixmor Property Group Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.