Using a Revenue DCF model with operating margin convergence from -5.7% to a target of 28.5% over 5 years, discounted at a WACC of 5.2%, Hudson Pacific Properties, Inc. (HPP) has an intrinsic value of $7.47 per share (range: $0.86 – $939.12).
Using the industry peer median EV/Revenue multiple (trailing + forward), Hudson Pacific Properties, Inc. (HPP) has a fair value of $47.07 based on 8 comparable companies in the REIT - Office industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Hudson Pacific Properties, Inc.HPP | 506 | 5.0x | 5.7x |
| Diversified Healthcare Trust | 1,821 | 1.1x | 1.2x |
| CBL & Associates Properties, Inc. | 1,398 | 5.9x | 17.5x |
| Two Harbors Investment Corp. | 1,158 | 14.7x | 17.1x |
| Easterly Government Properties, Inc. | 1,082 | 8.2x | 7.8x |
| MFA Financial, Inc. | 1,057 | 13.5x | 33.6x |
| Piedmont Office Realty Trust, Inc. | 1,030 | 5.8x | 6.3x |
| Smith Douglas Homes Corp. | 125 | 0.2x | 0.2x |
| Granite Point Mortgage Trust Inc. | 71 | 8.1x | — |
| Industry Median | 7.0x | 7.8x | |
| (*) Revenue | 831 | 721 | |
| = Enterprise Value | 5,822 | 5,631 | |
| (-) Net Debt | 3,623 | 3,623 | |
| Equity Value | 2,199 | 2,008 | |
| (/) Outstanding shares | 45 | 45 | |
| Fair Price | $49 | $45 | |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.