Essential Stock Valuation

EPRT
 Stock
  

USD 23.15  0.27  1.18%   

What would the acquisition value of Essential Properties be today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Essential Properties, is its stock price multiplied by the total number of shares outstanding, calculating Essential Properties' enterprise value requires a different approach. It uses Essential Properties' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about (736.5 M) in 2022. Enterprise Value is likely to drop to about 4 B in 2022.
Essential Properties shows a prevailing Real Value of $27.31 per share. The current price of the firm is $23.15. At this time, the firm appears to be undervalued. Our model computes the value of Essential Properties from reviewing the firm fundamentals such as Profit Margin of 46.49 %, shares outstanding of 121.57 M, and Current Valuation of 4.02 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Essential Properties Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Essential Properties's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Essential Most Recent Valuation Data

Price Book
1.31
Enterprise Value
4.4 B
Enterprise Value Ebitda
17.47
Price Sales
12.17
Forward PE
14.04
Trailing PE
23.62
Undervalued
Today 23.15
Please note that Essential Properties' price fluctuation is very steady at this time. Calculation of the real value of Essential Properties is based on 3 months time horizon. Increasing Essential Properties' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Essential Properties Realty is useful when determining the fair value of the Essential stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Essential Properties. Since Essential Properties is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Essential Stock. However, Essential Properties' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
27.31
Real Value
29.30
Upside
Estimating the potential upside or downside of Essential Properties Realty helps investors to forecast how Essential stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Essential Properties more accurately as focusing exclusively on Essential Properties' fundamentals will not take into account other important factors:
Earnings
Estimates (5)
LowProjected EPSHigh
1.311.321.33
Details
Hype
Prediction
LowEstimated ValueHigh
21.1423.1325.12
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.850.921.00
Details
5 Analysts
Consensus
LowTarget PriceHigh
27.0032.5036.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Essential Properties' intrinsic value based on its ongoing forecasts of Essential Properties' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Essential Properties' closest peers. When choosing an evaluation method for Essential Properties, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Essential Properties Investments

164.69 Million

Essential Valuation Drivers Correlation

Many accounts on the financial statements of Essential Properties are highly interrelated and sometimes correlated. Consequently, when conducting Essential's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Essential
Click cells to compare fundamentals

Essential Valuation Trend

Knowing Essential Properties' actual value is paramount for traders to make sound investment determinations. Essential Properties' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Essential Properties' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Essential Properties' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Essential Market Cap

Essential Properties Realty is one of the top stocks in market capitalization category among related companies. Market capitalization of REIT—Diversified industry is currently estimated at about 25.55 Billion. Essential Properties retains roughly 2.81 Billion in market capitalization claiming about 11% of equities listed under REIT—Diversified industry.
Capitalization  Total debt  Workforce  Revenue  Valuation

Essential Properties Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Essential Properties's current stock value. Our valuation model uses many indicators to compare Essential Properties value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Essential Properties competition to find correlations between indicators driving Essential Properties's intrinsic value. More Info.
Essential Properties Realty is one of the top stocks in last dividend paid category among related companies. It is one of the top stocks in price to earning category among related companies reporting about  49.39  of Price to Earning per Last Dividend Paid. Price to Earnings Ratio is likely to gain to 36.90 in 2022. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to gain to about 221.9 M in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Essential Properties by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Essential Properties' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Essential Properties' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Essential Properties' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Essential Properties and how it compares across the competition.

About Essential Properties Valuation

The stock valuation mechanism determines the current worth of Essential Properties Realty on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Essential Properties Realty. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Essential Properties based exclusively on its fundamental and basic technical indicators. By analyzing Essential Properties's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Essential Properties's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Essential Properties. We calculate exposure to Essential Properties's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Essential Properties's related companies.
Fiscal Year End
December
Industry
REIT-Diversified
Concentration
Diversified REITs
Full Time Employees
37.0
Service Category
Equity Real Estate Investment Trusts (REITs)
Employer Id Number
82-4005693
Last ReportedProjected for 2022
Gross Profit224.5 M195.5 M
Profit Margin 41.58  44.86 
Essential Properties' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Essential Properties' value is low or high relative to the company's performance and growth projections. Determining the market value of Essential Properties can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Essential Properties represents a small ownership stake in the entity. As a stockholder of Essential, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Essential Properties Dividends Analysis For Valuation

Dividend Yield is likely to gain to 0.0394 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (115.3 M) in 2022. . Essential Properties Price to Earnings Ratio are comparatively stable at the moment as compared to the past year. Essential Properties reported Price to Earnings Ratio of 35.16 in 2021. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to gain to about 221.9 M in 2022, whereas Earnings per Basic Share are likely to drop 0.66 in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-112.3 M-115.3 M
Dividend Yield 0.035  0.0394 
Dividends per Basic Common Share 1.00  0.99 
There are various types of dividends Essential Properties can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Essential shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Essential Properties Realty directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Essential pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Essential Properties by the value of the dividends paid out.

Essential Properties Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Essential Properties does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio3.12
Earnings Quarterly Growth32.40%
Revenue Growth18.80%
Payout Ratio108.33%
Enterprise Value To Ebitda16.44
Earnings Growth13.40%
Enterprise Value To Revenue14.55

Essential Properties Current Valuation Indicators

Valuation refers to the process of determining the present value of Essential Properties Realty and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Essential we look at many different elements of the entity such as Essential's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Essential Properties' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Essential Properties' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Essential Properties, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Essential Properties' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Essential Properties' worth.
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When running Essential Properties price analysis, check to measure Essential Properties' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Essential Properties is operating at the current time. Most of Essential Properties' value examination focuses on studying past and present price action to predict the probability of Essential Properties' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Essential Properties' price. Additionally, you may evaluate how the addition of Essential Properties to your portfolios can decrease your overall portfolio volatility.
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Is Essential Properties' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Essential Properties. If investors know Essential will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Essential Properties listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.14
Market Capitalization
3.3 B
Quarterly Revenue Growth YOY
0.18
Return On Assets
0.0291
Return On Equity
0.058
The market value of Essential Properties is measured differently than its book value, which is the value of Essential that is recorded on the company's balance sheet. Investors also form their own opinion of Essential Properties' value that differs from its market value or its book value, called intrinsic value, which is Essential Properties' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Essential Properties' market value can be influenced by many factors that don't directly affect Essential Properties' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Essential Properties' value and its price as these two are different measures arrived at by different means. Investors typically determine Essential Properties value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essential Properties' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.