As of July 17, 2025, PRS Reit PLC's estimated intrinsic value ranges from $1.15 to $359.30 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $146.89 | +38.1% |
| Discounted Cash Flow (5Y) | $64.36 | -39.5% |
| Dividend Discount Model (Multi-Stage) | $246.16 | +131.3% |
| Dividend Discount Model (Stable) | $359.30 | +237.7% |
| Earnings Power Value | $1.15 | -98.9% |
Is PRS Reit PLC (PRSR.L) undervalued or overvalued?
With the current market price at $106.40, 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 PRS Reit PLC'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 | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.72 | 0.83 |
| Cost of equity | 8.3% | 10.8% |
| Cost of debt | 4.9% | 7.1% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.71 | 0.71 |
| After-tax WACC | 6.5% | 8.7% |
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 | $64 | $761M | 86.1% |
| 10-Year Growth | $147 | $1,217M | 76.9% |
| 5-Year EBITDA | $101 | $963M | 89.0% |
| 10-Year EBITDA | $199 | $1,506M | 81.3% |
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 | $31M |
| Discount Rate (WACC) | 8.7% - 6.5% |
| Enterprise Value | $352M - $472M |
| Net Debt | $406M |
| Equity Value | $(53)M - $66M |
| Outstanding Shares | 6M |
| Fair Value | $(10) - $12 |
| Selected Fair Value | $1.15 |
| Metric | Value |
|---|---|
| Market Capitalization | $588M |
| Enterprise Value | $994M |
| Trailing P/E | 5.36 |
| Forward P/E | 7.93 |
| Trailing EV/EBITDA | 21.00 |
| Current Dividend Yield | 373.83% |
| Dividend Growth Rate (5Y) | 2.62% |
| Debt-to-Equity Ratio | 0.71 |
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% | $44.07 |
| Discounted Cash Flow (5Y) | 25% | $16.09 |
| Dividend Discount Model (Multi-Stage) | 20% | $49.23 |
| Dividend Discount Model (Stable) | 15% | $53.89 |
| Earnings Power Value | 10% | $0.12 |
| Weighted Average | 100% | $163.40 |
Based on our comprehensive valuation analysis, PRS Reit PLC's intrinsic value is $163.40, which is approximately 53.6% above the current market price of $106.40.
Key investment considerations:
Given these factors, we believe PRS Reit PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.