Boston Properties engages in the ownership and development of office properties. Its properties are located in Boston, Massachusetts, Washington, D.C., midtown Manhattan, New York, San Francisco, California, and Princeton, New Jersey. The company was founded in 1970 and is based in Boston, Massachusetts.
BXP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Boston Properties Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Boston Properties Inc ranked in the 30th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for BXP, they are:
Boston Properties Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 2.59% of tickers in our DCF set.
Boston Properties Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than merely 11.49% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Real Estate that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BXP, try OHI, SBAC, SITC, KIM, and PSA.
The REIT market sold off by ~40% earlier this year and has since then recovered a good portion of its losses. Nonetheless, many individual names remain down very significantly: Simon Property Group (SPG): Down 58% Boston Properties (BXP): Down 45% Host Hotel (HST): Down 45% EPR Properties (EPR): Down 65%...
Jussi Askola on Seeking Alpha | September 23, 2020
Unless you’re born the crown prince or princess, kingdoms aren’t all that easy to obtain. There’s a lot of work involved in gaining one, regardless of whether you build it from the ground up, conquer it, or marry into it. OK. Maybe not the last one so much. Though I...