* Note: Prices are in Million (M) USD.
Description:
CoreSite Realty Corporation (NYSE: COR) delivers secure, reliable, high-performance data center, cloud access and interconnect solutions to a growing client ecosystem in eight key North American markets.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,232 M
Debt : $8,240 M
EBITDA : $4,011 M
Net Debt (Debt - Cash): $6,009 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - office
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 17.55
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $1,623 M
Average Revenue: $137,554 M
Revenue Converted To Free Cash Flow (%): 1.2%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-09-30): $293,959 M
Revenue 4 Years Ago (2020-09-30): $189,894 M
Last 5 Years Average Revenue Growth: 11%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-09-30): $200 M
Share Count 5 Years Ago (2020-09-30): $205 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $17.09
Trailing 12-Month Earnings Per Share (EPS): $15.95
Average Earnings Per Share (EPS): $16.52
Dividend Per Share (DPS): $2
Payout Ratio: 13%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 18 valid ROE years (max 20).Average ROE: 87.5%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $290
52-Week Low: $217
Threshold Price (15% Above 52-Week Low): $249
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $56,771 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Cencora Inc. (COR) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 19 Years Avg P/E (18.66)
× EPS ($16.52) = $308.26.
Last 19 Years Avg PE 18.66, Fair Value PE 15, Industry Based PE 15, Growth Based PE 10, RCFC Based PE 10.94, ROE Based PE 50, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 19.53. Value-Trades has assined P/E value 19.53. Since an average (Current Year EPS + Next Year EPS) earning per share is $16.52.
The fair value of Cencora Inc. (COR) stock should be (19.53 x $16.52) = $322.57.
