As of June 6, 2025, Minto Apartment Real Estate Investment Trust's estimated intrinsic value ranges from $6.26 to $57.30 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $57.30 | +295.7% |
| Discounted Cash Flow (5Y) | $44.95 | +210.4% |
| Dividend Discount Model (Multi-Stage) | $11.11 | -23.2% |
| Dividend Discount Model (Stable) | $21.37 | +47.6% |
| Earnings Power Value | $6.26 | -56.7% |
Is Minto Apartment Real Estate Investment Trust (MI.UN.TO) undervalued or overvalued?
With the current market price at $14.48, 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 Minto Apartment 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 | 1.22 | 1.29 |
| Cost of equity | 9.4% | 12.0% |
| Cost of debt | 4.6% | 5.4% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1.68 | 1.68 |
| After-tax WACC | 5.7% | 7.0% |
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 | $45 | $2,594M | 76.6% |
| 10-Year Growth | $57 | $3,062M | 60.5% |
| 5-Year EBITDA | $52 | $2,865M | 78.9% |
| 10-Year EBITDA | $64 | $3,314M | 63.5% |
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 | $70M |
| Discount Rate (WACC) | 7.0% - 5.7% |
| Enterprise Value | $1,012M - $1,244M |
| Net Debt | $891M |
| Equity Value | $121M - $353M |
| Outstanding Shares | 38M |
| Fair Value | $3 - $9 |
| Selected Fair Value | $6.26 |
| Metric | Value |
|---|---|
| Market Capitalization | $549M |
| Enterprise Value | $1439M |
| Trailing P/E | 5.62 |
| Forward P/E | 11.32 |
| Trailing EV/EBITDA | 17.40 |
| Current Dividend Yield | 706.59% |
| Dividend Growth Rate (5Y) | 6.96% |
| Debt-to-Equity Ratio | 1.68 |
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% | $17.19 |
| Discounted Cash Flow (5Y) | 25% | $11.24 |
| Dividend Discount Model (Multi-Stage) | 20% | $2.22 |
| Dividend Discount Model (Stable) | 15% | $3.21 |
| Earnings Power Value | 10% | $0.63 |
| Weighted Average | 100% | $34.48 |
Based on our comprehensive valuation analysis, Minto Apartment Real Estate Investment Trust's weighted average intrinsic value is $34.48, which is approximately 138.1% above the current market price of $14.48.
Key investment considerations:
Given these factors, we believe Minto Apartment Real Estate Investment Trust is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.