Using a Revenue DCF model with operating margin convergence from -2.5% to a target of 28.4% over 5 years, discounted at a WACC of 7.7%, Diversified Healthcare Trust (DHC) has an intrinsic value of $19.78 per share (range: $5.92 – $54.82).
Using a Revenue DCF model with operating margin convergence from -2.5% to a target of 28.4% over 5 years, discounted at a WACC of 7.7%, Diversified Healthcare Trust (DHC) has an intrinsic value of $17.23 per share (range: $3.46 – $52.34).
Using the industry peer median EV/Revenue multiple (trailing + forward), Diversified Healthcare Trust (DHC) has a fair value of $60.60 based on 6 comparable companies in the REIT - Healthcare Facilities industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Diversified Healthcare TrustDHC | 2,030 | 2.8x | 3.0x |
| Two Harbors Investment Corp. | 1,300 | 14.9x | 17.4x |
| Centerspace | 1,137 | 6.1x | 8.2x |
| Piedmont Office Realty Trust, Inc. | 1,061 | 5.9x | 5.7x |
| MFA Financial, Inc. | 1,011 | 13.5x | 33.5x |
| PennyMac Mortgage Investment Trust | 964 | 19.2x | 61.1x |
| Hudson Pacific Properties, Inc. | 594 | 5.1x | 5.9x |
| Industry Median | 9.8x | 12.8x | |
| (*) Revenue | 1,538 | 1,460 | |
| = Enterprise Value | 15,030 | 18,687 | |
| (-) Net Debt | 2,296 | 2,296 | |
| Equity Value | 12,733 | 16,391 | |
| (/) Outstanding shares | 240 | 240 | |
| Fair Price | $53 | $68 | |
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.