As of June 12, 2025, Regional REIT Ltd's estimated intrinsic value ranges from $161.83 to $214.10 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $181.95 | +52.9% |
| Discounted Cash Flow (5Y) | $161.83 | +36.0% |
| Earnings Power Value | $214.10 | +79.9% |
Is Regional REIT Ltd (RGL.L) undervalued or overvalued?
With the current market price at $119.00, 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 Regional REIT Ltd'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 | 0.88 | 1.06 |
| Cost of equity | 9.3% | 12.4% |
| Cost of debt | 4.0% | 7.1% |
| Tax rate | 0.0% | 0.1% |
| Debt/Equity ratio | 1.74 | 1.74 |
| After-tax WACC | 5.9% | 9.1% |
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 | $162 | $524M | 68.3% |
| 10-Year Growth | $182 | $556M | 49.7% |
| 5-Year EBITDA | $136 | $484M | 65.6% |
| 10-Year EBITDA | $164 | $528M | 47.1% |
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $43M |
| Discount Rate (WACC) | 9.1% - 5.9% |
| Enterprise Value | $480M - $734M |
| Net Debt | $267M |
| Equity Value | $213M - $467M |
| Outstanding Shares | 2M |
| Fair Value | $134 - $294 |
| Selected Fair Value | $214.10 |
| Metric | Value |
|---|---|
| Market Capitalization | $189M |
| Enterprise Value | $456M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 12.90 |
| Current Dividend Yield | 1196.39% |
| Dividend Growth Rate (5Y) | -4.38% |
| Debt-to-Equity Ratio | 1.74 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 46% | $54.59 |
| Discounted Cash Flow (5Y) | 38% | $40.46 |
| Earnings Power Value | 15% | $21.41 |
| Weighted Average | 100% | $179.16 |
Based on our comprehensive valuation analysis, Regional REIT Ltd's weighted average intrinsic value is $179.16, which is approximately 50.6% above the current market price of $119.00.
Key investment considerations:
Given these factors, we believe Regional REIT Ltd is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.