Mid-America Apartment Communities, Inc. (MAA) Company Bio
Mid-America Apartment Communities is engaged in acquisition, redevelopment, new development, property management, and disposition of multifamily apartment communities. The company was founded in 1977 and is based in Memphis, Tennessee.
MAA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Mid America Apartment Communities Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Mid America Apartment Communities Inc ranked in the 90th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Mid America Apartment Communities Inc, consider:
Its compound free cash flow growth rate, as measured over the past 3.01 years, is 1.57% -- higher than 94.43% of stocks in our DCF forecasting set.
Mid America Apartment Communities Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 18.8% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 24% of stocks in its sector (Real Estate).
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 Mid America Apartment Communities Inc? See EXR, SQFT, TPHS, STWD, and HASI.
Main Thesis The purpose of this article is to evaluate Mid-America Apartment Communities Inc. (MAA) as an investment option. MAA is a stock I had owned for a while, and I am now tempted to get back in at its current price. While Real Estate is down big in 2020,...
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