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:
Below please find a table outlining a discounted cash flow forecast for BXP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Boston Properties Inc ranked in the 32th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 42.67%. The most interesting components of our discounted cash flow analysis for Boston Properties Inc ended up being:
Boston Properties Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 2.13% 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 only 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 only 11.68% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IRT, OHI, AMT, SITC, and DEI can be thought of as valuation peers to BXP, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
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