Using the industry peer median P/E multiple (trailing + forward), Mid-America Apartment Communities, Inc. (MAA) has a fair value of $110.40 based on 3 comparable companies in the REIT - Residential industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Mid-America Apartment Communities, Inc.MAA | 14,348 | 32.4x | 36.4x |
| Essex Property Trust, Inc.ESS | 15,737 | 23.4x | 42.3x |
| Invitation Homes Inc.INVH | 15,286 | 26.0x | 36.2x |
| Kimco Realty CorporationKIM | 15,145 | 26.9x | 28.4x |
| Industry Median | 26.0x | 36.2x | |
| (*) Profit after tax | 447 | 394 | |
| Equity Value | 11,608 | 14,250 | |
| (/) Outstanding shares | 117 | 117 | |
| Fair Price | $99 | $122 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.