Using an unlevered Free Cash Flow to Firm (FCFF) model, we project American Realty Investors, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.4% to 3.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 2153, DPO 606, DIO 60). At a 5.8% WACC with mid-year discounting, the terminal value (142% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.4x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $44.36 per share, suggesting ARL is undervalued by 221.2% at the current price of $13.81.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | -20 | -21 | -22 | -23 | -24 | -24 |
| (−) Net Interest | 16 | 17 | 17 | 18 | 19 | 19 |
| (+) D&A | 25 | 31 | 63 | 96 | 131 | 135 |
| EBITDA | 20 | 26 | 58 | 92 | 126 | 129 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 154 | 161 | 168 | 174 | 180 | — |
| (−) ΔWC | -109 | 11 | 12 | 11 | 10 | — |
| Free Cash Flow (FCF) | -24 | -146 | -121 | -94 | -64 | — |
| Peers' EBITDA Multiple | 13.4x | |||||
| Terminal Value | 1,732 | |||||
| WACC / Discount Rate | 5.81% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -24 | -134 | -105 | -77 | -50 | 1,306 |
| Enterprise Value | 917 | |||||
| Projection Period | -390 | -42.5% | ||||
| Terminal Value | 1,306 | 142.5% | ||||
| (−) Current Net Debt | 200 | |||||
| Equity Value | 716 | |||||
| (÷) Outstanding Shares | 16M | |||||
| Fair Price | $44 | +221.2% | ||||
| WACC \ EV/EBITDA Exit Multiple | 9.4x | 11.4x | 13.4x | 15.4x | 17.4x |
|---|---|---|---|---|---|
| 3.8% | $25 | $38 | $51 | $65 | $78 |
| 4.8% | $22 | $35 | $48 | $60 | $73 |
| 5.8% | $20 | $32 | $44 | $56 | $69 |
| 6.8% | $18 | $30 | $41 | $53 | $64 |
| 7.8% | $16 | $27 | $38 | $49 | $60 |
Current price: $13.81. Green = undervalued, Red = overvalued.
Based on default parameters
Using an unlevered Free Cash Flow to Firm (FCFF) model, we project American Realty Investors, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 4.4% to 3.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 2153, DPO 606, DIO 60). At a 5.8% WACC with mid-year discounting, the terminal value (154% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.4x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $47.26 per share, suggesting ARL is undervalued by 242.2% at the current price of $13.81.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit Before Tax | -20 | -21 | -22 | -23 | -24 | -25 | -26 | -27 | -27 | -28 | -29 |
| (−) Net Interest | 16 | 17 | 17 | 18 | 19 | 19 | 20 | 21 | 22 | 22 | 23 |
| (+) D&A | 25 | 31 | 63 | 96 | 131 | 168 | 175 | 182 | 189 | 196 | 201 |
| EBITDA | 20 | 26 | 58 | 92 | 126 | 162 | 169 | 176 | 183 | 190 | 195 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 154 | 161 | 168 | 175 | 182 | 189 | 196 | 203 | 210 | 216 | — |
| (−) ΔWC | -109 | 11 | 12 | 12 | 12 | 12 | 12 | 12 | 11 | 11 | — |
| Free Cash Flow (FCF) | -24 | -146 | -121 | -95 | -68 | -38 | -38 | -38 | -38 | -38 | — |
| Peers' EBITDA Multiple | 13.4x | ||||||||||
| Terminal Value | 2,607 | ||||||||||
| WACC / Discount Rate | 5.81% | ||||||||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5.5 | 6.5 | 7.5 | 8.5 | 9.5 | 5 |
| Present Value of FCF | -24 | -134 | -105 | -78 | -52 | -28 | -27 | -25 | -24 | -22 | 1,482 |
| Enterprise Value | 963 | ||||||||||
| Projection Period | -519 | -53.8% | |||||||||
| Terminal Value | 1,482 | 153.8% | |||||||||
| (−) Current Net Debt | 200 | ||||||||||
| Equity Value | 763 | ||||||||||
| (÷) Outstanding Shares | 16M | ||||||||||
| Fair Price | $47 | +242.2% | |||||||||
| WACC \ EV/EBITDA Exit Multiple | 9.4x | 11.4x | 13.4x | 15.4x | 17.4x |
|---|---|---|---|---|---|
| 3.8% | $31 | $48 | $64 | $81 | $97 |
| 4.8% | $25 | $40 | $55 | $70 | $85 |
| 5.8% | $20 | $34 | $47 | $61 | $75 |
| 6.8% | $15 | $28 | $40 | $53 | $65 |
| 7.8% | $11 | $22 | $34 | $45 | $56 |
Current price: $13.81. Green = undervalued, Red = overvalued.
Based on default parameters
Using the industry peer median P/E Multiples multiple (trailing + forward), American Realty Investors, Inc. (ARL) has a fair value of $12.41 based on 3 comparable companies in the Real Estate - Development industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| American Realty Investors, Inc.ARL | 223 | 14.2x | — |
| Corporación Inmobiliaria Vesta, S.A.B. de C.V. | 3,023 | 12.8x | 18.2x |
| New England Realty Associates Limited Partnership | 210 | 34.9x | — |
| Douglas Elliman Inc. | 184 | 12.3x | 3.0x |
| Industry Median | 12.8x | 10.6x | |
| (*) Profit after tax | 16 | ||
| Equity Value | 200 | ||
| (/) Outstanding shares | 16 | ||
| Fair Price | $12 | ||
Using the industry peer median EV/EBITDA multiple (trailing + forward), American Realty Investors, Inc. (ARL) has a fair value of $7,258.35 based on 4 comparable companies in the Real Estate - Development industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| American Realty Investors, Inc.ARL | 223 | 10.4x | 0.0x |
| Corporación Inmobiliaria Vesta, S.A.B. de C.V. | 3,023 | 13.5x | 12.6x |
| BRT Apartments Corp. | 276 | 19.8x | 20.0x |
| Modiv Industrial, Inc. | 186 | 13.2x | 13.3x |
| Douglas Elliman Inc. | 184 | 5.3x | 4.1x |
| Industry Median | 13.4x | 12.9x | |
| (*) EBITDA | 41 | 18,132 | |
| = Enterprise Value | 544 | 234,331 | |
| (-) Net Debt | 200 | 200 | |
| Equity Value | 344 | 234,131 | |
| (/) Outstanding shares | 16 | 16 | |
| Fair Price | $21 | $14495 | |
Using the industry peer median EV/Revenue multiple (trailing + forward), American Realty Investors, Inc. (ARL) has a fair value of $5,465.97 based on 5 comparable companies in the Real Estate - Development industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| American Realty Investors, Inc.ARL | 223 | 8.5x | 0.0x |
| Corporación Inmobiliaria Vesta, S.A.B. de C.V. | 3,023 | 13.6x | 12.6x |
| Maui Land & Pineapple Company, Inc. | 311 | 16.0x | 0.3x |
| BRT Apartments Corp. | 276 | 7.8x | 7.9x |
| Modiv Industrial, Inc. | 186 | 9.5x | 9.5x |
| Douglas Elliman Inc. | 184 | 0.2x | 0.1x |
| Industry Median | 9.5x | 7.9x | |
| (*) Revenue | 50 | 22,332 | |
| = Enterprise Value | 474 | 176,499 | |
| (-) Net Debt | 200 | 200 | |
| Equity Value | 274 | 176,299 | |
| (/) Outstanding shares | 16 | 16 | |
| Fair Price | $17 | $10915 | |
Using the PEG framework with historical EPS growth of 25.0%, the company has a fair value of $24.25 based on TTM EPS (FY2025) of $0.97. The current PEG ratio is 0.31.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateHistorical | 46.6% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| TTM EPS (FY2025) | $0.97 |
| Fair Value | $24.25 |
No analyst estimates available.
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.3M | $0.21 | — |
| FY2022 | $373.3M | $23.11 | +10904.8% |
| FY2023 | $4.0M | $0.25 | -98.9% |
| FY2024 | $-14.7M | $-0.91 | -464.0% |
| FY2025 | $15.7M | $0.97 | — |
4Y Historical EPS CAGR: 46.6%
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.