INVH's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 1,441.58 -- higher than 97.3% of US-listed equities with positive expected earnings growth.
Of note is the ratio of Invitation Homes Inc's sales and general administrative expense to its total operating expenses; merely 6.07% of US stocks have a lower such ratio.
The ratio of debt to operating expenses for Invitation Homes Inc is higher than it is for about 94.94% of US stocks.
If you're looking for stocks that are quantitatively similar to Invitation Homes Inc, a group of peers worth examining would be CMS, EXR, BXP, BKH, and STOR.
Invitation Homes LP owns and manages renovated single-family homes for rent in Phoenix, Arizona; Inland Empire, Los Angeles, Orange County, Sacramento, and Ventura County, California; Atlanta, Georgia; Chicago, Illinois; Minneapolis, Minnesota; Charlotte, North Carolina; Las Vegas, Nevada; Seattle, Washington; and Jacksonville, Orlando, Tampa, and Miami, Florida. The company was founded in 2012 and is based in Dallas, Texas.
INVH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Invitation Homes Inc. To summarize, we found that Invitation Homes Inc ranked in the 100th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. In terms of the factors that were most noteworthy in this DCF analysis for INVH, they are:
The company's compound free cash flow growth rate over the past 3.59 years comes in at 3.69%; that's greater than 96.84% of US stocks we're applying DCF forecasting to.
As a business, INVH is generating more cash flow than 80.95% of positive cash flow stocks in the Real Estate.
Invitation Homes Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Invitation Homes Inc? See CLNY, IRCP, XIN, BRT, and EPR.
I have been researching residential REITs lately as I believe that this is a segment of the market that could see some upside. Invitation Homes (INVH) came to my attention while researching another article. I ended up liking this company and put the stock on my watchlist due to valuation....
Ryan Dezember is a reporter for The Wall Street Journal, writing about financial markets and investors. He previously wrote about the oil industry from the Journal's Houston bureau. Before that he worked as a reporter for the Mobile Register, reporting on the real-estate boom and bust for coastal Alabama's daily newspaper. The following is an excerpt from his new book, " UNDERWATER: How Our American Dream of Homeownership Became a Nightmare ." In it, Dezember dives into how, following the housing crash, foreclosed homes became a new rental opportunity. The Blackstone Group, the world's largest real estate investor, funded a group called Treehouse — later renamed Invitation Homes — which eventually would spend $150 million on foreclosed houses each week. Visit Business Insider's homepage...