REIT - Office · NYSE
Current Price
$57.60
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on BXP, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Boston Properties (NYSE:BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company's portfolio totals 51.2 million square feet and 196 properties, including six properties under construction/redevelopment.
ROIC (TTM)
5.0%
ROE (TTM)
6.2%
FCF Yield
7.55%
Based on trailing twelve-month data, BXP shows a free cash flow per share of N/A and a ROIC of 5.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 7.55% are important context metrics when evaluating BXP's stock valuation relative to peers.
The intrinsic value of BXP depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether BXP is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $57.60. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on BXP, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on REIT - Office industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BXP's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For BXP, Inc., this means projecting how much free cash flow the REIT - Office will produce over the next 5-10 years, then discounting those amounts to today's dollars. BXP's ROIC of 5.0% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BXP, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
