As of August 17, 2025, RealPage Inc's estimated intrinsic value ranges from $7.71 to $16.60 per share, depending on the valuation methodology applied.
Valuation Method | Fair Value (USD) | Implied Upside/Downside |
---|---|---|
Discounted Cash Flow (10Y) | $16.60 | -81.3% |
Discounted Cash Flow (5Y) | $10.03 | -88.7% |
Dividend Discount Model (Multi-Stage) | $7.71 | -91.3% |
Dividend Discount Model (Stable) | $7.74 | -91.3% |
Earnings Power Value | $14.14 | -84.1% |
Is RealPage Inc (RP) undervalued or overvalued?
With the current market price at $88.72, the stock appears to be significantly 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 RealPage 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 | 1.04 | 1.1 |
Cost of equity | 7.6% | 9.9% |
Cost of debt | 4.0% | 5.5% |
Tax rate | 7.4% | 21.6% |
Debt/Equity ratio | 0.14 | 0.14 |
After-tax WACC | 7.1% | 9.3% |
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 | $10 | $1,687M | 79.5% |
10-Year Growth | $17 | $2,358M | 66.7% |
5-Year EBITDA | $27 | $3,379M | 89.8% |
10-Year EBITDA | $34 | $4,126M | 81.0% |
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 | $169M |
Discount Rate (WACC) | 9.3% - 7.1% |
Enterprise Value | $1,826M - $2,386M |
Net Debt | $662M |
Equity Value | $1,164M - $1,724M |
Outstanding Shares | 102M |
Fair Value | $11 - $17 |
Selected Fair Value | $14.14 |
Metric | Value |
---|---|
Market Capitalization | $9061M |
Enterprise Value | $9723M |
Trailing P/E | 195.64 |
Forward P/E | 186.44 |
Trailing EV/EBITDA | 17.95 |
Current Dividend Yield | 0.00% |
Dividend Growth Rate (5Y) | 0.00% |
Debt-to-Equity Ratio | 0.14 |
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% | $4.98 |
Discounted Cash Flow (5Y) | 25% | $2.51 |
Dividend Discount Model (Multi-Stage) | 20% | $1.54 |
Dividend Discount Model (Stable) | 15% | $1.16 |
Earnings Power Value | 10% | $1.41 |
Weighted Average | 100% | $11.60 |
Based on our comprehensive valuation analysis, RealPage Inc's intrinsic value is $11.60, which is approximately 86.9% below the current market price of $88.72.
Key investment considerations:
Given these factors, we believe RealPage Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.