W.P. Carey Inc. invests in commercial properties that are generally triple-net leased to single corporate tenants including office, warehouse, industrial, logistics, retail, hotel, R&D, and self-storage properties. The company was founded in 1973 and is based in New York, New York.
WPC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WPC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that W P Carey Inc ranked in the 19th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for W P Carey Inc ended up being:
W P Carey Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 10.56% of tickers in our DCF set.
W P Carey Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 24% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
RYN, UNIT, BXP, HST, and APLE can be thought of as valuation peers to WPC, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
Article Thesis W. P. Carey (WPC) is a REIT that operates in an attractive, low-risk niche of the industrial real estate sector. The company has generated solid growth in the past, and should be able to grow its funds from operations going forward as well. It offers reliable dividend growth...
Jonathan Weber on Seeking Alpha | September 29, 2020
W. P. Carey (WPC) +1.1% PM, announced a $44M million sale-leaseback of two Midwest-based food manufacturing facilities master leased on a triple-net basis for a period of 25 years master leased on a triple-net basis for a period of 25 years."In today's challenging economic environment, sale-leasebacks provide growing companies with a highly efficient...