Below please find a table outlining a discounted cash flow forecast for OBAS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Optibase Ltd ranked in the 24th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for OBAS, they are:
Interest coverage, a measure of earnings relative to interest payments, is 0.8; that's higher than just 20.52% of US stocks in the Real Estate sector that have positive free cash flow.
The company's compound free cash flow growth rate over the past 5.01 years comes in at -0.1%; that's greater than only 14.39% of US stocks we're applying DCF forecasting to.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PGRE, KW, ALX, CBLAQ, and PSA can be thought of as valuation peers to OBAS, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
Optibase' ([[OBAS]]) wholly owned European subsidiary, Optibase Bavaria GmbH & Co. KG, completed sale of its Germany commercial property portfolio comprising of 27 properties for ~$38.9M. This would enable the company to achieve significant returns and liquidity to support ongoing activities amid difficult times....
Optibase Ltd. (NASDAQ: OBAS), or Optibase, today announced that further to its announcement dated February 11, 2020, its wholly owned European subsidiary, Optibase Bavaria GmbH & Co. KG, has yesterday completed the sale of the Company's portfolio in Germany comprised of twenty-seven (27) separate commercial properties, located mostly in Bavaria, Germany, for a total consideration of EUR 35 million (app. $38.9).