Omega Healthcare Investors, Inc. (OHI) Company Bio
Omega Healthcare Investors Inc. is a real estate investment trust investing in and providing financing to the long-term care industry. The company was founded in 1992 and is based in Maryland, United States.
OHI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for OHI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Omega Healthcare Investors Inc ranked in the 18th 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 Omega Healthcare Investors Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 2.65; that's higher than 62.8% 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 5.57 years, is -0.04% -- higher than merely 23.34% of stocks in our DCF forecasting set.
Omega Healthcare Investors Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 11.12% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HASI, SBAC, UHT, GRIF, and KW can be thought of as valuation peers to OHI, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.