As of June 8, 2025, BTB Real Estate Investment Trust has a Discounted Cash Flow (DCF) derived fair value of $5.40 per share. With the current market price at $3.62, this represents a potential upside of 49.2%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $3.91 |
| DCF Fair Value (10-year) | $5.40 |
| Potential Upside (5-year) | 8.1% |
| Potential Upside (10-year) | 49.2% |
| Discount Rate (WACC) | 5.0% - 7.5% |
Revenue is projected to grow from $130 million in 12-2024 to $181 million by 12-2034, representing a compound annual growth rate of approximately 3.4%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 130 | 2% |
| 12-2025 | 136 | 4% |
| 12-2026 | 140 | 3% |
| 12-2027 | 144 | 3% |
| 12-2028 | 148 | 3% |
| 12-2029 | 151 | 2% |
| 12-2030 | 159 | 5% |
| 12-2031 | 162 | 2% |
| 12-2032 | 170 | 5% |
| 12-2033 | 173 | 2% |
| 12-2034 | 181 | 4% |
Net profit margin is expected to improve from 30% in 12-2024 to 22% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 39 | 30% |
| 12-2025 | 30 | 22% |
| 12-2026 | 31 | 22% |
| 12-2027 | 32 | 22% |
| 12-2028 | 32 | 22% |
| 12-2029 | 33 | 22% |
| 12-2030 | 35 | 22% |
| 12-2031 | 36 | 22% |
| 12-2032 | 37 | 22% |
| 12-2033 | 38 | 22% |
| 12-2034 | 40 | 22% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 0 |
| 12-2026 | 0 |
| 12-2027 | 0 |
| 12-2028 | 0 |
| 12-2029 | 0 |
| 12-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 5 |
| Days Inventory | 0 |
| Days Payables | 298 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 51 | 8 | 0 | (2) | 45 |
| 2026 | 70 | 11 | 0 | (0) | 59 |
| 2027 | 73 | 11 | 0 | (0) | 62 |
| 2028 | 75 | 12 | 0 | (1) | 64 |
| 2029 | 76 | 12 | 0 | (0) | 64 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 3.91 | 8.1% |
| 10-Year DCF (Growth) | 5.40 | 49.2% |
| 5-Year DCF (EBITDA) | 4.10 | 13.2% |
| 10-Year DCF (EBITDA) | 5.53 | 52.8% |
Is BTB Real Estate Investment Trust (BTB.UN.TO) a buy or a sell? BTB Real Estate Investment Trust is definitely a buy. Based on our DCF analysis, BTB Real Estate Investment Trust (BTB.UN.TO) appears to be significantly undervalued with upside potential of 49.2%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $3.62.