As of May 27, 2025, Columbia Property Trust Inc's estimated intrinsic value ranges from $15.52 to $18.36 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $18.11 | -6.1% |
| Discounted Cash Flow (5Y) | $18.36 | -4.7% |
| Dividend Discount Model (Multi-Stage) | $16.14 | -16.3% |
| Dividend Discount Model (Stable) | $16.15 | -16.2% |
| Earnings Power Value | $15.52 | -19.5% |
Is Columbia Property Trust Inc (CXP) undervalued or overvalued?
With the current market price at $19.28, the stock appears to be moderately overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Columbia Property Trust 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 | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.77 | 0.86 |
| Cost of equity | 6.4% | 8.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 1.2% | 2.2% |
| Debt/Equity ratio | 0.57 | 0.57 |
| After-tax WACC | 5.9% | 7.3% |
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 | $18 | $3,381M | 85.4% |
| 10-Year Growth | $18 | $3,353M | 71.1% |
| 5-Year EBITDA | $9 | $2,255M | 78.1% |
| 10-Year EBITDA | $10 | $2,432M | 60.1% |
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 | $199M |
| Discount Rate (WACC) | 7.3% - 5.9% |
| Enterprise Value | $2,731M - $3,380M |
| Net Debt | $1,280M |
| Equity Value | $1,452M - $2,101M |
| Outstanding Shares | 114M |
| Fair Value | $13 - $18 |
| Selected Fair Value | $15.52 |
| Metric | Value |
|---|---|
| Market Capitalization | $2207M |
| Enterprise Value | $3486M |
| Trailing P/E | 26.44 |
| Forward P/E | 25.67 |
| Trailing EV/EBITDA | 11.70 |
| Current Dividend Yield | 446.22% |
| Dividend Growth Rate (5Y) | -10.22% |
| Debt-to-Equity Ratio | 0.57 |
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% | $5.43 |
| Discounted Cash Flow (5Y) | 25% | $4.59 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.23 |
| Dividend Discount Model (Stable) | 15% | $2.42 |
| Earnings Power Value | 10% | $1.55 |
| Weighted Average | 100% | $17.23 |
Based on our comprehensive valuation analysis, Columbia Property Trust Inc's weighted average intrinsic value is $17.23, which is approximately 10.6% below the current market price of $19.28.
Key investment considerations:
Given these factors, we believe Columbia Property Trust Inc is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.