As of December 15, 2025, Monmouth Real Estate Investment Corp's estimated intrinsic value ranges from $1.63 to $22.61 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $22.61 | +92.1% |
| Discounted Cash Flow (5Y) | $21.27 | +80.7% |
| Dividend Discount Model (Multi-Stage) | $15.89 | +35.0% |
| Dividend Discount Model (Stable) | $9.03 | -23.3% |
| Earnings Power Value | $1.63 | -86.1% |
Is Monmouth Real Estate Investment Corp (MNR) undervalued or overvalued?
With the current market price at $11.77, 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 Monmouth Real Estate Investment Corp'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 | 0.74 | 1 |
| Cost of equity | 7.2% | 10.5% |
| Cost of debt | 5.1% | 6.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.38 | 0.38 |
| After-tax WACC | 6.3% | 8.8% |
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 | $21 | $4,672M | 78.6% |
| 10-Year Growth | $23 | $4,898M | 60.7% |
| 5-Year EBITDA | $56 | $10,572M | 90.6% |
| 10-Year EBITDA | $51 | $9,718M | 80.2% |
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 | $100M |
| Discount Rate (WACC) | 8.8% - 6.3% |
| Enterprise Value | $1,137M - $1,594M |
| Net Debt | $1,090M |
| Equity Value | $46M - $503M |
| Outstanding Shares | 168M |
| Fair Value | $0 - $3 |
| Selected Fair Value | $1.63 |
| Metric | Value |
|---|---|
| Market Capitalization | $1982M |
| Enterprise Value | $3073M |
| Trailing P/E | 18.63 |
| Forward P/E | 13.38 |
| Trailing EV/EBITDA | 13.95 |
| Current Dividend Yield | 1313.29% |
| Dividend Growth Rate (5Y) | 19.02% |
| Debt-to-Equity Ratio | 0.38 |
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% | $6.78 |
| Discounted Cash Flow (5Y) | 25% | $5.32 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.18 |
| Dividend Discount Model (Stable) | 15% | $1.35 |
| Earnings Power Value | 10% | $0.16 |
| Weighted Average | 100% | $16.79 |
Based on our comprehensive valuation analysis, Monmouth Real Estate Investment Corp's intrinsic value is $16.79, which is approximately 42.7% above the current market price of $11.77.
Key investment considerations:
Given these factors, we believe Monmouth Real Estate Investment Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.