Hersha Hospitality Trust Class A Common Shares of Beneficial Interest (HT) Company Bio
Hersha Hospitality Trust owns and operates mid scale limited service hotels in Pennsylvania, New York, New Jersey, Maryland, Georgia, Connecticut, and Massachusetts. The company was founded in 1998 and is based in New Cumberland, Pennsylvania.
HT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Hersha Hospitality Trust ranked in the 42th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Hersha Hospitality Trust ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 0.63; that's higher than just 15.34% of US stocks in the Real Estate sector that have positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 4.78 years, is -0.03% -- higher than only 24.47% of stocks in our DCF forecasting set.
14% of the company's capital comes from equity, which is greater than only 5.61% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
JLL, ALX, FR, RLGY, and WRE can be thought of as valuation peers to HT, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
The Company will host a conference call to discuss these results at 9:00 AM Eastern Time on Thursday, May 7, 2020. Hosting the call will be Mr. Jay H. Shah, Chief Executive Officer, Mr. Neil H. Shah, President and Chief Operating Officer, and Mr. Ashish Parikh, Chief Financial Officer. A live audio webcast of the conference call will be available on the Company’s website at www.hersha.com.