With a one year PEG ratio of 184.37, Paramount Group Inc is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than 84.84% of US stocks.
Of note is the ratio of Paramount Group Inc's sales and general administrative expense to its total operating expenses; merely 10.19% of US stocks have a lower such ratio.
The ratio of debt to operating expenses for Paramount Group Inc is higher than it is for about 93.17% of US stocks.
Stocks with similar financial metrics, market capitalization, and price volatility to Paramount Group Inc are ROIC, HT, AKR, CDR, and UE.
Paramount Group owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City, Washington, D.C. and San Francisco. The company was founded in 1978 and is based in New York, New York.
PGRE 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 Paramount Group Inc. To summarize, we found that Paramount Group Inc ranked in the 67th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 220.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PGRE, they are:
36% of the company's capital comes from equity, which is greater than just 23.02% of stocks in our cash flow based forecasting set.
Paramount Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.77. This coverage rate is greater than that of just 23.25% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 12. This value is greater than 89.2% stocks in the Real Estate sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SPG, FRPH, EQC, SNR, and SKT can be thought of as valuation peers to PGRE, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.