As of May 23, 2025, BTB Real Estate Investment Trust's estimated intrinsic value ranges from $1.90 to $6.17 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $6.17 | +75.9% |
| Discounted Cash Flow (5Y) | $4.28 | +21.8% |
| Dividend Discount Model (Multi-Stage) | $2.79 | -20.5% |
| Dividend Discount Model (Stable) | $3.49 | -0.5% |
| Earnings Power Value | $1.90 | -45.7% |
Is BTB Real Estate Investment Trust (BTB.UN.TO) undervalued or overvalued?
With the current market price at $3.51, 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 BTB Real Estate Investment Trust'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 | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.23 | 1.5 |
| Cost of equity | 9.4% | 13.3% |
| Cost of debt | 4.3% | 6.8% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 2.35 | 2.35 |
| After-tax WACC | 5.0% | 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 | $4 | $1,110M | 75.7% |
| 10-Year Growth | $6 | $1,278M | 59.7% |
| 5-Year EBITDA | $4 | $1,128M | 76.0% |
| 10-Year EBITDA | $6 | $1,295M | 60.2% |
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 | $54M |
| Discount Rate (WACC) | 7.5% - 5.0% |
| Enterprise Value | $725M - $1,076M |
| Net Debt | $733M |
| Equity Value | $(7)M - $343M |
| Outstanding Shares | 88M |
| Fair Value | $(0) - $4 |
| Selected Fair Value | $1.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $310M |
| Enterprise Value | $1042M |
| Trailing P/E | 7.99 |
| Forward P/E | 10.40 |
| Trailing EV/EBITDA | 15.20 |
| Current Dividend Yield | 724.80% |
| Dividend Growth Rate (5Y) | 4.46% |
| Debt-to-Equity Ratio | 2.35 |
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% | $1.85 |
| Discounted Cash Flow (5Y) | 25% | $1.07 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.56 |
| Dividend Discount Model (Stable) | 15% | $0.52 |
| Earnings Power Value | 10% | $0.19 |
| Weighted Average | 100% | $4.19 |
Based on our comprehensive valuation analysis, BTB Real Estate Investment Trust's weighted average intrinsic value is $4.19, which is approximately 19.5% above the current market price of $3.51.
Key investment considerations:
Given these factors, we believe BTB Real Estate Investment Trust is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.