Find your next quality investment with Simply Wall St’s easy and powerful screener, trusted by over 7 million individual investors worldwide.
CT Real Estate Investment Trust (TSX:CRT.UN) has caught investor attention after a recent price move, with the unit price at CA$17.84 and returns of 9.9% over the past month and 5.7% over the past 3 months.
For readers tracking income focused real estate names in Canada, these returns sit alongside a market value of about CA$4.25b and reported annual revenue of CA$604.25 million, with net income of CA$238.44 million.
See our latest analysis for CT Real Estate Investment Trust.
The recent 3.4% 7 day share price return and 9.9% 30 day share price return at CA$17.84 sit within a broader pattern, with a 1 year total shareholder return of 28.1% that suggests momentum has been building rather than fading.
If CT Real Estate Investment Trust’s move has you looking at other areas of the market, this can be a handy moment to broaden your search and uncover 2 top founder-led companies
With units trading at CA$17.84, just above the CA$17.55 analyst price target but with an estimated 36% intrinsic discount, you have to ask: Is CT REIT still undervalued, or is the market already pricing in future growth?
On the numbers provided, CT REIT screens as undervalued on earnings, with a P/E of 17.8x compared with a DCF fair value estimate that sits well above the current CA$17.84 unit price.
The P/E ratio compares the current unit price to earnings per unit and is a common way investors judge how much they are paying for each dollar of profit. For a REIT such as CT REIT, it gives a quick read on how the market is valuing its current earnings profile.
In this case, the P/E of 17.8x sits below both the North American Retail REITs industry average of 24.4x and a peer average of 34.7x. The SWS DCF model points to a future cash flow value of CA$27.75 per unit, and the units are also described as trading 35.7% below an internal fair value estimate. Taken together, that combination of a lower-than-peer earnings multiple and a sizeable intrinsic discount indicates the market is pricing CT REIT’s earnings more conservatively than many of its sector peers.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-earnings of 17.8x (UNDERVALUED)
However, the heavy reliance on Canadian Tire as the key tenant, along with the current premium to the CA$17.55 price target, could both challenge the bullish valuation case.
