Sabra Health Care REIT, Inc.

SBRA

Real EstateREIT - Healthcare FacilitiesNASDAQ

$20.58

Market Cap: $5.19B

Sabra Health Care REIT, Inc. (SBRA) Valuation Summary

Updated May 11, 2026 00:51

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$31.55 – $723.59	$67.08	+225.9%
Growth Exit 10Y	$40.15 – $837.00	$81.44	+295.7%
EBITDA Exit 5Y	$26.26 – $57.12	$40.41	+96.4%
EBITDA Exit 10Y	$33.37 – $74.25	$50.89	+147.3%
▸ Trading Multiples
P/E	$11.31 – $28.64	$15.81	-23.2%
EV/EBITDA	$14.04 – $26.84	$22.74	+10.5%
EV/Revenue	$21.15 – $24.15	$27.61	+34.2%
▸ PEG
PEG Fair Value	$11.21 – $11.21	$11.21	-45.5%
▸ Earnings Power Value
Earnings Power Value	$11.27 – $23.30	$15.97	-22.4%
▸ Dividend Discount
Dividend Discount	$21.73 – $65.78	$34.05	+65.4%

Valuation History

DCF Analysis

Fair Value

$67.08

Market Price

$20.58

Upside / Downside

+225.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Sabra Health Care REIT, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 14.0% to 25.9% 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 74, DPO 30, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (87% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $67.08 per share, suggesting SBRA is undervalued by 225.9% at the current price of $20.58.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	416	451	463	513	646	668
(−) Net Interest	146	158	162	180	226	234
(+) D&A	7	10	22	33	46	48
EBITDA	568	620	647	726	918	951

(−) Tax	20	22	23	25	32	33
(−) CapEx	52	57	58	64	81	84
(−) ΔWC	89	17	6	24	64	66
Free Cash Flow (FCFF)	407	524	560	613	742	768

Terminal Value						22,973
WACC / Discount Rate	6.8%
Long-term Growth Rate	3.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	393	475	475	486	551	16,500

Enterprise Value	18,880
Projection Period	2,380	12.6%
Terminal Value	16,500	87.4%

(−) Current Net Debt	2,479

Equity Value	16,401
(/) Outstanding Shares	244

Fair Price	$67.08

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
4.8%	$106	$135	$185	$294	$724
5.8%	$71	$83	$101	$128	$176
6.8%	$52	$58	$67	$79	$96
7.8%	$40	$44	$49	$55	$64
8.8%	$32	$34	$38	$42	$46

Current price: $20.58. Green = undervalued, Red = overvalued.

Fair Value

$81.44

Market Price

$20.58

Upside / Downside

+295.7%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Sabra Health Care REIT, 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 14.0% to 3.8% 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 74, DPO 30, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $81.44 per share, suggesting SBRA is undervalued by 295.7% at the current price of $20.58.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	416	451	463	513	646	692	736	776	812	844	873
(−) Net Interest	146	158	162	180	226	243	258	272	285	296	306
(+) D&A	7	10	22	33	46	62	69	76	84	92	95
EBITDA	568	620	647	726	918	997	1,063	1,125	1,182	1,231	1,274

(−) Tax	20	22	23	25	32	34	36	38	40	41	43
(−) CapEx	52	57	58	64	81	87	92	97	102	106	109
(−) ΔWC	89	17	6	24	64	22	21	20	17	15	16
Free Cash Flow (FCFF)	407	524	560	613	742	854	914	970	1,023	1,069	1,107

Terminal Value											33,106
WACC / Discount Rate	6.8%
Long-term Growth Rate	3.5%

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	393	475	475	486	551	594	594	591	583	570	17,079

Enterprise Value	22,390
Projection Period	5,311	23.7%
Terminal Value	17,079	76.3%

(−) Current Net Debt	2,479

Equity Value	19,911
(/) Outstanding Shares	244

Fair Price	$81.44

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
4.8%	$134	$167	$224	$349	$837
5.8%	$89	$103	$122	$152	$204
6.8%	$65	$72	$81	$94	$111
7.8%	$50	$54	$60	$66	$74
8.8%	$40	$43	$46	$50	$54

Current price: $20.58. Green = undervalued, Red = overvalued.

Fair Value

$40.41

Market Price

$20.58

Upside / Downside

+96.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Sabra Health Care REIT, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 14.0% to 25.9% 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 74, DPO 30, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (81% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $40.41 per share, suggesting SBRA is undervalued by 96.4% at the current price of $20.58.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

EV/EBITDA Exit Multiple

14.76x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	416	451	463	513	646	662
(−) Net Interest	146	158	162	180	226	232
(+) D&A	7	10	22	33	46	47
EBITDA	568	620	647	726	918	941

(−) Tax	20	22	23	25	32	—
(−) CapEx	52	57	58	64	81	—
(−) ΔWC	89	17	6	24	64	—
Free Cash Flow (FCF)	407	524	560	613	742	—

Peers' EBITDA Multiple						14.8x
Terminal Value						13,895
WACC / Discount Rate	6.84%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	393	475	475	486	551	9,980

Enterprise Value	12,359
Projection Period	2,380	19.3%
Terminal Value	9,980	80.7%

(−) Current Net Debt	2,479
Equity Value	9,881
(÷) Outstanding Shares	244M
Fair Price	$40	+96.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.8x	12.8x	14.8x	16.8x	18.8x
4.8%	$33	$39	$45	$51	$57
5.8%	$31	$37	$43	$48	$54
6.8%	$29	$35	$40	$46	$51
7.8%	$28	$33	$38	$44	$49
8.8%	$26	$31	$36	$41	$46

Current price: $20.58. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$50.89

Market Price

$20.58

Upside / Downside

+147.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Sabra Health Care REIT, 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 14.0% to 3.8% 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 74, DPO 30, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (64% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $50.89 per share, suggesting SBRA is undervalued by 147.3% at the current price of $20.58.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

EV/EBITDA Exit Multiple

14.76x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	416	451	463	513	646	692	736	776	812	844	865
(−) Net Interest	146	158	162	180	226	243	258	272	285	296	303
(+) D&A	7	10	22	33	46	62	69	76	84	92	94
EBITDA	568	620	647	726	918	997	1,063	1,125	1,182	1,231	1,262

(−) Tax	20	22	23	25	32	34	36	38	40	41	—
(−) CapEx	52	57	58	64	81	87	92	97	102	106	—
(−) ΔWC	89	17	6	24	64	22	21	20	17	15	—
Free Cash Flow (FCF)	407	524	560	613	742	854	914	970	1,023	1,069	—

Peers' EBITDA Multiple											14.8x
Terminal Value											18,627
WACC / Discount Rate	6.84%

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	393	475	475	486	551	594	594	591	583	570	9,609

Enterprise Value	14,920
Projection Period	5,311	35.6%
Terminal Value	9,609	64.4%

(−) Current Net Debt	2,479
Equity Value	12,441
(÷) Outstanding Shares	244M
Fair Price	$51	+147.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.8x	12.8x	14.8x	16.8x	18.8x
4.8%	$49	$55	$61	$68	$74
5.8%	$44	$50	$56	$62	$68
6.8%	$40	$46	$51	$56	$62
7.8%	$37	$41	$46	$51	$56
8.8%	$33	$38	$42	$47	$51

Current price: $20.58. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$15.81

Market Price

$20.58

Upside / Downside

-23.2%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Sabra Health Care REIT, Inc. (SBRA) has a fair value of $15.81 based on 8 comparable companies in the REIT - Healthcare Facilities industry.

P/E Valuation — REIT - Healthcare Facilities

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Sabra Health Care REIT, Inc.SBRA	5,032	32.2x	30.2x
Public StoragePSA	54,302	34.3x	32.4x
Phillips Edison & Company, Inc.PECO	5,045	45.0x	85.9x
EPR PropertiesEPR	4,459	17.8x	19.3x
Cousins Properties IncorporatedCUZ	4,404	111.5x	93.5x
Millrose Properties, Inc.MRP	4,152	11.0x	11.1x
Howard Hughes Holdings Inc.HHH	3,922	31.3x	18.8x
National Health Investors, Inc.NHI	3,648	24.9x	21.0x
Arbor Realty Trust, Inc.ABR	1,392	12.9x	4.4x
Industry Median		28.1x	20.1x
(*) Profit after tax		156	167
Equity Value		4,376	3,354
(/) Outstanding shares		244	244
Fair Price		$18	$14

Selected Fair Value (avg of trailing + forward)

$15.81

-23.2%

Fair Value

$22.74

Market Price

$20.58

Upside / Downside

+10.5%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Sabra Health Care REIT, Inc. (SBRA) has a fair value of $22.74 based on 10 comparable companies in the REIT - Healthcare Facilities industry.

EV/EBITDA Valuation — REIT - Healthcare Facilities

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Sabra Health Care REIT, Inc.SBRA	5,032	16.4x	14.4x
Public StoragePSA	54,302	19.8x	19.0x
The Macerich CompanyMAC	5,690	26.8x	27.9x
Phillips Edison & Company, Inc.PECO	5,045	14.9x	16.9x
EPR PropertiesEPR	4,459	12.9x	14.7x
Cousins Properties IncorporatedCUZ	4,404	12.6x	11.9x
Millrose Properties, Inc.MRP	4,152	12.7x	12.7x
Howard Hughes Holdings Inc.HHH	3,922	14.6x	13.2x
National Health Investors, Inc.NHI	3,648	17.0x	23.1x
SL Green Realty Corp.SLG	3,221	26.2x	39.1x
Arbor Realty Trust, Inc.ABR	1,392	13.3x	22.9x
Industry Median		14.8x	17.9x
(*) EBITDA		457	521
= Enterprise Value		6,743	9,332
(-) Net Debt		2,479	2,479
Equity Value		4,264	6,853
(/) Outstanding shares		244	244
Fair Price		$17	$28

Selected Fair Value (avg of trailing + forward)

$22.74

+10.5%

Fair Value

$27.61

Market Price

$20.58

Upside / Downside

+34.2%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sabra Health Care REIT, Inc. (SBRA) has a fair value of $27.61 based on 10 comparable companies in the REIT - Healthcare Facilities industry.

EV/Revenue Valuation — REIT - Healthcare Facilities

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Sabra Health Care REIT, Inc.SBRA	5,032	9.7x	8.5x
Public StoragePSA	54,302	13.3x	12.8x
The Macerich CompanyMAC	5,690	10.7x	11.1x
Phillips Edison & Company, Inc.PECO	5,045	10.3x	11.7x
EPR PropertiesEPR	4,459	10.4x	11.9x
Cousins Properties IncorporatedCUZ	4,404	8.1x	7.7x
Millrose Properties, Inc.MRP	4,152	10.4x	10.4x
Howard Hughes Holdings Inc.HHH	3,922	5.1x	4.6x
National Health Investors, Inc.NHI	3,648	12.7x	17.2x
SL Green Realty Corp.SLG	3,221	10.8x	16.1x
Arbor Realty Trust, Inc.ABR	1,392	9.9x	17.0x
Industry Median		10.4x	11.8x
(*) Revenue		775	883
= Enterprise Value		8,062	10,398
(-) Net Debt		2,479	2,479
Equity Value		5,584	7,920
(/) Outstanding shares		244	244
Fair Price		$23	$32

Selected Fair Value (avg of trailing + forward)

$27.61

+34.2%

PEG Fair Value

Fair Value

$11.21

Market Price

$20.58

Upside / Downside

-45.5%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 14.7% plus 5.6% dividend yield, the company has a fair value of $11.21 based on NTM EPS (FY2027) of $0.76. The current PEG ratio is 1.84.

PEG Ratio

1.84Pricey

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 27.0 ÷ (9.1% + 5.6%) = 1.84

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: StalwartPEG highly applicable

PEG works well for steady growers with predictable earnings.

Fair Value Calculation

EPS Growth RateForward	9.1%
Dividend Yield	+5.6%
Adjusted Growth (clamped 8–25%)	14.7%
Fair P/E	14.7x
NTM EPS (FY2027)	$0.76
Fair Value	$11.21

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$0.64	—	—
FY2027E	$0.76	+19.1%	3

2Y Forward EPS CAGR: 9.1%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$-113.3M	$-0.52	—
FY2022	$-77.6M	$-0.34	—
FY2023	$13.8M	$0.06	—
FY2024	$126.7M	$0.54	+813.7%
FY2025	$155.6M	$0.64	+18.5%

4Y Historical EPS CAGR: 416.1%

Earnings Power Value

Fair Value

$15.97

Market Price

$20.58

Upside / Downside

-22.4%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 6.8% and normalized earnings of $436.7M, the company has a fair value of $15.97 per share. The EPV range is $11.27 – $23.30 based on WACC sensitivity (5.3% – 8.3%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	437	437	437
(/) WACC	8.3%	6.8%	5.3%
Enterprise Value	5,235	6,383	8,175
(-) Net debt	2,479	2,479	2,479
Equity Value	2,756	3,904	5,696
(/) Outstanding shares	244	244	244
Fair Price	$11.27	$15.97	$23.30

Dividend Discount Model

Fair Value

$34.05

Market Price

$20.58

Upside / Downside

+65.4%

Verdict

Undervalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.1% and projected dividend growth of 9.4%, the fair value is $34.05 per share. The DDM range is $21.73 – $65.78 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.18

Dividend Yield

5.58%

Payout Ratio

186.0%

Dividend Coverage

0.54x

FCF Payout Ratio83.0%

DPS CAGR (4Y)-0.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.18	186.0%	-0.2%
2024	$1.19	221.1%	-0.4%
2023	$1.19	2016.9%	-0.7%
2022	$1.20	—	-0.0%
2021	$1.20	—	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.30	9.4%	0.9247	$1.20
2027	$1.42	9.4%	0.8550	$1.21
2028	$1.55	9.4%	0.7906	$1.23
2029	$1.70	9.4%	0.7311	$1.24
2030	$1.85	9.4%	0.6760	$1.25
Terminal Value	$1.92 DPS	3.5%		$27.92

PV of Projected Dividends$6.13

PV of Terminal Value$27.92

Fair Value per Share$34.05

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	7.4%	8.4%	9.4%	10.4%	11.4%
6.1%	$55	$58	$60	$63	$66
7.1%	$40	$42	$44	$45	$47
8.1%	$31	$33	$34	$36	$37
9.1%	$26	$27	$28	$29	$30
10.1%	$22	$23	$24	$25	$26

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.

Sabra Health Care REIT, Inc. (SBRA) Valuation Summary

Updated May 11, 2026 00:51

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$31.55 – $723.59	$67.08	+225.9%
Growth Exit 10Y	$40.15 – $837.00	$81.44	+295.7%
EBITDA Exit 5Y	$26.26 – $57.12	$40.41	+96.4%
EBITDA Exit 10Y	$33.37 – $74.25	$50.89	+147.3%
▸ Trading Multiples
P/E	$11.31 – $28.64	$15.81	-23.2%
EV/EBITDA	$14.04 – $26.84	$22.74	+10.5%
EV/Revenue	$21.15 – $24.15	$27.61	+34.2%
▸ PEG
PEG Fair Value	$11.21 – $11.21	$11.21	-45.5%
▸ Earnings Power Value
Earnings Power Value	$11.27 – $23.30	$15.97	-22.4%
▸ Dividend Discount
Dividend Discount	$21.73 – $65.78	$34.05	+65.4%

Valuation History

DCF Analysis

Fair Value

$67.08

Market Price

$20.58

Upside / Downside

+225.9%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	416	451	463	513	646	668
(−) Net Interest	146	158	162	180	226	234
(+) D&A	7	10	22	33	46	48
EBITDA	568	620	647	726	918	951

(−) Tax	20	22	23	25	32	33
(−) CapEx	52	57	58	64	81	84
(−) ΔWC	89	17	6	24	64	66
Free Cash Flow (FCFF)	407	524	560	613	742	768

Terminal Value						22,973
WACC / Discount Rate	6.8%
Long-term Growth Rate	3.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	393	475	475	486	551	16,500

Enterprise Value	18,880
Projection Period	2,380	12.6%
Terminal Value	16,500	87.4%

(−) Current Net Debt	2,479

Equity Value	16,401
(/) Outstanding Shares	244

Fair Price	$67.08

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
4.8%	$106	$135	$185	$294	$724
5.8%	$71	$83	$101	$128	$176
6.8%	$52	$58	$67	$79	$96
7.8%	$40	$44	$49	$55	$64
8.8%	$32	$34	$38	$42	$46

Current price: $20.58. Green = undervalued, Red = overvalued.

Fair Value

$81.44

Market Price

$20.58

Upside / Downside

+295.7%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	416	451	463	513	646	692	736	776	812	844	873
(−) Net Interest	146	158	162	180	226	243	258	272	285	296	306
(+) D&A	7	10	22	33	46	62	69	76	84	92	95
EBITDA	568	620	647	726	918	997	1,063	1,125	1,182	1,231	1,274

(−) Tax	20	22	23	25	32	34	36	38	40	41	43
(−) CapEx	52	57	58	64	81	87	92	97	102	106	109
(−) ΔWC	89	17	6	24	64	22	21	20	17	15	16
Free Cash Flow (FCFF)	407	524	560	613	742	854	914	970	1,023	1,069	1,107

Terminal Value											33,106
WACC / Discount Rate	6.8%
Long-term Growth Rate	3.5%

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	393	475	475	486	551	594	594	591	583	570	17,079

Enterprise Value	22,390
Projection Period	5,311	23.7%
Terminal Value	17,079	76.3%

(−) Current Net Debt	2,479

Equity Value	19,911
(/) Outstanding Shares	244

Fair Price	$81.44

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
4.8%	$134	$167	$224	$349	$837
5.8%	$89	$103	$122	$152	$204
6.8%	$65	$72	$81	$94	$111
7.8%	$50	$54	$60	$66	$74
8.8%	$40	$43	$46	$50	$54

Current price: $20.58. Green = undervalued, Red = overvalued.

Fair Value

$40.41

Market Price

$20.58

Upside / Downside

+96.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Sabra Health Care REIT, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 14.0% to 25.9% 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 74, DPO 30, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (81% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $40.41 per share, suggesting SBRA is undervalued by 96.4% at the current price of $20.58.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

EV/EBITDA Exit Multiple

14.76x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	416	451	463	513	646	662
(−) Net Interest	146	158	162	180	226	232
(+) D&A	7	10	22	33	46	47
EBITDA	568	620	647	726	918	941

(−) Tax	20	22	23	25	32	—
(−) CapEx	52	57	58	64	81	—
(−) ΔWC	89	17	6	24	64	—
Free Cash Flow (FCF)	407	524	560	613	742	—

Peers' EBITDA Multiple						14.8x
Terminal Value						13,895
WACC / Discount Rate	6.84%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	393	475	475	486	551	9,980

Enterprise Value	12,359
Projection Period	2,380	19.3%
Terminal Value	9,980	80.7%

(−) Current Net Debt	2,479
Equity Value	9,881
(÷) Outstanding Shares	244M
Fair Price	$40	+96.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.8x	12.8x	14.8x	16.8x	18.8x
4.8%	$33	$39	$45	$51	$57
5.8%	$31	$37	$43	$48	$54
6.8%	$29	$35	$40	$46	$51
7.8%	$28	$33	$38	$44	$49
8.8%	$26	$31	$36	$41	$46

Current price: $20.58. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$50.89

Market Price

$20.58

Upside / Downside

+147.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Sabra Health Care REIT, 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 14.0% to 3.8% 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 74, DPO 30, DIO 60). At a 6.8% WACC with mid-year discounting, the terminal value (64% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $50.89 per share, suggesting SBRA is undervalued by 147.3% at the current price of $20.58.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

EV/EBITDA Exit Multiple

14.76x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	416	451	463	513	646	692	736	776	812	844	865
(−) Net Interest	146	158	162	180	226	243	258	272	285	296	303
(+) D&A	7	10	22	33	46	62	69	76	84	92	94
EBITDA	568	620	647	726	918	997	1,063	1,125	1,182	1,231	1,262

(−) Tax	20	22	23	25	32	34	36	38	40	41	—
(−) CapEx	52	57	58	64	81	87	92	97	102	106	—
(−) ΔWC	89	17	6	24	64	22	21	20	17	15	—
Free Cash Flow (FCF)	407	524	560	613	742	854	914	970	1,023	1,069	—

Peers' EBITDA Multiple											14.8x
Terminal Value											18,627
WACC / Discount Rate	6.84%

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	393	475	475	486	551	594	594	591	583	570	9,609

Enterprise Value	14,920
Projection Period	5,311	35.6%
Terminal Value	9,609	64.4%

(−) Current Net Debt	2,479
Equity Value	12,441
(÷) Outstanding Shares	244M
Fair Price	$51	+147.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	10.8x	12.8x	14.8x	16.8x	18.8x
4.8%	$49	$55	$61	$68	$74
5.8%	$44	$50	$56	$62	$68
6.8%	$40	$46	$51	$56	$62
7.8%	$37	$41	$46	$51	$56
8.8%	$33	$38	$42	$47	$51

Current price: $20.58. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$15.81

Market Price

$20.58

Upside / Downside

-23.2%

Verdict

Overvalued

P/E Valuation — REIT - Healthcare Facilities

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Sabra Health Care REIT, Inc.SBRA	5,032	32.2x	30.2x
Public StoragePSA	54,302	34.3x	32.4x
Phillips Edison & Company, Inc.PECO	5,045	45.0x	85.9x
EPR PropertiesEPR	4,459	17.8x	19.3x
Cousins Properties IncorporatedCUZ	4,404	111.5x	93.5x
Millrose Properties, Inc.MRP	4,152	11.0x	11.1x
Howard Hughes Holdings Inc.HHH	3,922	31.3x	18.8x
National Health Investors, Inc.NHI	3,648	24.9x	21.0x
Arbor Realty Trust, Inc.ABR	1,392	12.9x	4.4x
Industry Median		28.1x	20.1x
(*) Profit after tax		156	167
Equity Value		4,376	3,354
(/) Outstanding shares		244	244
Fair Price		$18	$14

Selected Fair Value (avg of trailing + forward)

$15.81

-23.2%

Fair Value

$22.74

Market Price

$20.58

Upside / Downside

+10.5%

Verdict

Undervalued

EV/EBITDA Valuation — REIT - Healthcare Facilities

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Sabra Health Care REIT, Inc.SBRA	5,032	16.4x	14.4x
Public StoragePSA	54,302	19.8x	19.0x
The Macerich CompanyMAC	5,690	26.8x	27.9x
Phillips Edison & Company, Inc.PECO	5,045	14.9x	16.9x
EPR PropertiesEPR	4,459	12.9x	14.7x
Cousins Properties IncorporatedCUZ	4,404	12.6x	11.9x
Millrose Properties, Inc.MRP	4,152	12.7x	12.7x
Howard Hughes Holdings Inc.HHH	3,922	14.6x	13.2x
National Health Investors, Inc.NHI	3,648	17.0x	23.1x
SL Green Realty Corp.SLG	3,221	26.2x	39.1x
Arbor Realty Trust, Inc.ABR	1,392	13.3x	22.9x
Industry Median		14.8x	17.9x
(*) EBITDA		457	521
= Enterprise Value		6,743	9,332
(-) Net Debt		2,479	2,479
Equity Value		4,264	6,853
(/) Outstanding shares		244	244
Fair Price		$17	$28

Selected Fair Value (avg of trailing + forward)

$22.74

+10.5%

Fair Value

$27.61

Market Price

$20.58

Upside / Downside

+34.2%

Verdict

Undervalued

EV/Revenue Valuation — REIT - Healthcare Facilities

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Sabra Health Care REIT, Inc.SBRA	5,032	9.7x	8.5x
Public StoragePSA	54,302	13.3x	12.8x
The Macerich CompanyMAC	5,690	10.7x	11.1x
Phillips Edison & Company, Inc.PECO	5,045	10.3x	11.7x
EPR PropertiesEPR	4,459	10.4x	11.9x
Cousins Properties IncorporatedCUZ	4,404	8.1x	7.7x
Millrose Properties, Inc.MRP	4,152	10.4x	10.4x
Howard Hughes Holdings Inc.HHH	3,922	5.1x	4.6x
National Health Investors, Inc.NHI	3,648	12.7x	17.2x
SL Green Realty Corp.SLG	3,221	10.8x	16.1x
Arbor Realty Trust, Inc.ABR	1,392	9.9x	17.0x
Industry Median		10.4x	11.8x
(*) Revenue		775	883
= Enterprise Value		8,062	10,398
(-) Net Debt		2,479	2,479
Equity Value		5,584	7,920
(/) Outstanding shares		244	244
Fair Price		$23	$32

Selected Fair Value (avg of trailing + forward)

$27.61

+34.2%

PEG Fair Value

Fair Value

$11.21

Market Price

$20.58

Upside / Downside

-45.5%

Verdict

Overvalued

PEG Ratio

1.84Pricey

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 27.0 ÷ (9.1% + 5.6%) = 1.84

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: StalwartPEG highly applicable

PEG works well for steady growers with predictable earnings.

Fair Value Calculation

EPS Growth RateForward	9.1%
Dividend Yield	+5.6%
Adjusted Growth (clamped 8–25%)	14.7%
Fair P/E	14.7x
NTM EPS (FY2027)	$0.76
Fair Value	$11.21

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$0.64	—	—
FY2027E	$0.76	+19.1%	3

2Y Forward EPS CAGR: 9.1%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$-113.3M	$-0.52	—
FY2022	$-77.6M	$-0.34	—
FY2023	$13.8M	$0.06	—
FY2024	$126.7M	$0.54	+813.7%
FY2025	$155.6M	$0.64	+18.5%

4Y Historical EPS CAGR: 416.1%

Earnings Power Value

Fair Value

$15.97

Market Price

$20.58

Upside / Downside

-22.4%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	437	437	437
(/) WACC	8.3%	6.8%	5.3%
Enterprise Value	5,235	6,383	8,175
(-) Net debt	2,479	2,479	2,479
Equity Value	2,756	3,904	5,696
(/) Outstanding shares	244	244	244
Fair Price	$11.27	$15.97	$23.30

Dividend Discount Model

Fair Value

$34.05

Market Price

$20.58

Upside / Downside

+65.4%

Verdict

Undervalued

Dividend Profile

Current DPS

$1.18

Dividend Yield

5.58%

Payout Ratio

186.0%

Dividend Coverage

0.54x

FCF Payout Ratio83.0%

DPS CAGR (4Y)-0.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.18	186.0%	-0.2%
2024	$1.19	221.1%	-0.4%
2023	$1.19	2016.9%	-0.7%
2022	$1.20	—	-0.0%
2021	$1.20	—	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.30	9.4%	0.9247	$1.20
2027	$1.42	9.4%	0.8550	$1.21
2028	$1.55	9.4%	0.7906	$1.23
2029	$1.70	9.4%	0.7311	$1.24
2030	$1.85	9.4%	0.6760	$1.25
Terminal Value	$1.92 DPS	3.5%		$27.92

PV of Projected Dividends$6.13

PV of Terminal Value$27.92

Fair Value per Share$34.05

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	7.4%	8.4%	9.4%	10.4%	11.4%
6.1%	$55	$58	$60	$63	$66
7.1%	$40	$42	$44	$45	$47
8.1%	$31	$33	$34	$36	$37
9.1%	$26	$27	$28	$29	$30
10.1%	$22	$23	$24	$25	$26