Weingarten Realty Investors invests in neighborhood and community shopping centers. The company was founded in 1948 and is based in Houston, Texas.
WRI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WRI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Weingarten Realty Investors ranked in the 29th 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 Weingarten Realty Investors ended up being:
The company's compound free cash flow growth rate over the past 5.46 years comes in at -0.14%; that's greater than merely 11.93% of US stocks we're applying DCF forecasting to.
Weingarten Realty Investors's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 3.16% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 11.59% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KIM, ALEX, AMT, IRT, and SKT can be thought of as valuation peers to WRI, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
At the BofA Securities 2020 Global Real Estate Conference, Weingarten Realty Investors ([[WRI]] +3.2%) reported 80% of its annual base rent is in shopping centers with a grocer component grocer sales average of $709 per sq.ft.WRI has a potential future large re-development pipeline of ~$2B; re-developments under construction stood at $55M...