As of May 27, 2025, Warehouse REIT PLC's estimated intrinsic value ranges from $2.62 to $95.60 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $83.15 | -15.7% |
| Discounted Cash Flow (5Y) | $50.48 | -48.8% |
| Dividend Discount Model (Multi-Stage) | $86.61 | -12.2% |
| Dividend Discount Model (Stable) | $95.60 | -3.0% |
| Earnings Power Value | $2.62 | -97.3% |
Is Warehouse REIT PLC (WHR.L) undervalued or overvalued?
With the current market price at $98.60, 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 Warehouse 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 | 0.82 | 0.96 |
| Cost of equity | 8.9% | 11.7% |
| Cost of debt | 4.0% | 9.2% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.7 | 0.7 |
| After-tax WACC | 6.6% | 10.0% |
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 | $50 | $503M | 76.3% |
| 10-Year Growth | $83 | $642M | 60.3% |
| 5-Year EBITDA | $126 | $824M | 85.5% |
| 10-Year EBITDA | $157 | $959M | 73.4% |
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 | $24M |
| Discount Rate (WACC) | 10.0% - 6.6% |
| Enterprise Value | $237M - $360M |
| Net Debt | $287M |
| Equity Value | $(50)M - $72M |
| Outstanding Shares | 4M |
| Fair Value | $(12) - $17 |
| Selected Fair Value | $2.62 |
| Metric | Value |
|---|---|
| Market Capitalization | $421M |
| Enterprise Value | $708M |
| Trailing P/E | 11.23 |
| Forward P/E | 13.97 |
| Trailing EV/EBITDA | 20.20 |
| Current Dividend Yield | 646.39% |
| Dividend Growth Rate (5Y) | 16.70% |
| Debt-to-Equity Ratio | 0.70 |
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% | $24.95 |
| Discounted Cash Flow (5Y) | 25% | $12.62 |
| Dividend Discount Model (Multi-Stage) | 20% | $17.32 |
| Dividend Discount Model (Stable) | 15% | $14.34 |
| Earnings Power Value | 10% | $0.26 |
| Weighted Average | 100% | $69.49 |
Based on our comprehensive valuation analysis, Warehouse REIT PLC's weighted average intrinsic value is $69.49, which is approximately 29.5% below the current market price of $98.60.
Key investment considerations:
Given these factors, we believe Warehouse REIT PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.