Simon Property Group primarily invests in regional malls, premium outlets, mills, and community/lifestyle centers. The company was founded in 1960 and is based in Indianapolis, Indiana.
SPG 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 Simon Property Group Inc. To summarize, we found that Simon Property Group Inc ranked in the 66th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 144.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Simon Property Group Inc ended up being:
42% of the company's capital comes from equity, which is greater than merely 23.7% of stocks in our cash flow based forecasting set.
Simon Property Group Inc's effective tax rate, as measured by taxes paid relative to net income, is at 1 -- greater than just 24.45% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 6. This value is greater than just 3.26% stocks in the Real Estate sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PSB, IRM, DHC, APLE, and SKT can be thought of as valuation peers to SPG, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
Simon Property Group (SPG) to sell $500M of 3.500% senior notes due September 2025, $750M of 2.650% senior notes due June 2030 and $750M of 3.800% senior notes due June 2050. Closing date is July 9. Net proceeds will be used to fund the planned optional redemption at par and for...