* Note: Prices are in Million (M) USD.
Description:
Welltower Inc. is a real estate investment trust that invests in healthcare infrastructure.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $4,410 M
Debt : $17,307 M
EBITDA : $3,281 M
Net Debt (Debt - Cash): $12,897 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - healthcare facilities
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: 29.81
Since Forward PE Ratio is between 25 - 35, 1 point 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: $501 M
Average Revenue: $3,203 M
Revenue Converted To Free Cash Flow (%): 15.6%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $7,854 M
Revenue 4 Years Ago (2020-12-31): $4,606 M
Last 5 Years Average Revenue Growth: 14%
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 (2024-12-31): $609 M
Share Count 5 Years Ago (2020-12-31): $417 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.10
Trailing 12-Month Earnings Per Share (EPS): $5.13
Average Earnings Per Share (EPS): $5.62
Dividend Per Share (DPS): $3
Payout Ratio: 49%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 3.9%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $167
52-Week Low: $114
Threshold Price (15% Above 52-Week Low): $131
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: $112,383 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above Welltower Inc (WELL) stock.
Last 11 Years Avg PE 29.93, Fair Value PE 12, Industry Based PE 20, Growth Based PE 14, RCFC Based PE 24.51, ROE Based PE 13.1, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.66. Value-Trades has assined P/E value 18.66. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.615.
The fair value of Welltower Inc (WELL) stock should be (18.66 x $5.615) = $104.78.
