As of June 21, 2025, Weingarten Realty Investors's estimated intrinsic value ranges from $1.58 to $9.92 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $3.32 | -89.4% |
| Discounted Cash Flow (5Y) | $2.58 | -91.8% |
| Dividend Discount Model (Multi-Stage) | $9.92 | -68.5% |
| Dividend Discount Model (Stable) | $7.77 | -75.3% |
| Earnings Power Value | $1.58 | -95.0% |
Is Weingarten Realty Investors (WRI) undervalued or overvalued?
With the current market price at $31.44, 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 Weingarten Realty Investors'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 | 1.14 | 1.21 |
| Cost of equity | 8.0% | 10.5% |
| Cost of debt | 4.0% | 7.2% |
| Tax rate | 0.4% | 0.5% |
| Debt/Equity ratio | 0.46 | 0.46 |
| After-tax WACC | 6.7% | 9.4% |
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 | $3 | $2,075M | 75.4% |
| 10-Year Growth | $3 | $2,169M | 56.5% |
| 5-Year EBITDA | $25 | $4,888M | 89.6% |
| 10-Year EBITDA | $20 | $4,295M | 78.0% |
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 | $153M |
| Discount Rate (WACC) | 9.4% - 6.7% |
| Enterprise Value | $1,622M - $2,271M |
| Net Debt | $1,745M |
| Equity Value | $(123)M - $526M |
| Outstanding Shares | 128M |
| Fair Value | $(1) - $4 |
| Selected Fair Value | $1.58 |
| Metric | Value |
|---|---|
| Market Capitalization | $4013M |
| Enterprise Value | $5758M |
| Trailing P/E | 45.81 |
| Forward P/E | 48.10 |
| Trailing EV/EBITDA | 15.05 |
| Current Dividend Yield | 382.24% |
| Dividend Growth Rate (5Y) | -2.69% |
| Debt-to-Equity Ratio | 0.46 |
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% | $1.00 |
| Discounted Cash Flow (5Y) | 25% | $0.65 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.98 |
| Dividend Discount Model (Stable) | 15% | $1.17 |
| Earnings Power Value | 10% | $0.16 |
| Weighted Average | 100% | $4.95 |
Based on our comprehensive valuation analysis, Weingarten Realty Investors's weighted average intrinsic value is $4.95, which is approximately 84.3% below the current market price of $31.44.
Key investment considerations:
Given these factors, we believe Weingarten Realty Investors is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.