REIT - Residential · NYSE
Current Price
$105.32
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Camden Property Trust with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Camden Property Trust, an S&P 400 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 167 properties containing 56,850 apartment homes across the United States. Upon completion of 7 properties currently under development, the Company's portfolio will increase to 59,104 apartment homes in 174 properties. Camden has been recognized as one of the 100 Best Companies to Work For® by FORTUNE magazine for 13 consecutive years, most recently ranking #18. The Company also received a Glassdoor Employees' Choice Award in 2020, ranking #25 for large U.S. companies.
ROIC (TTM)
3.3%
ROE (TTM)
8.5%
FCF Yield
7.49%
Based on trailing twelve-month data, CPT shows a free cash flow per share of N/A and a ROIC of 3.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 7.49% are important context metrics when evaluating CPT's stock valuation relative to peers.
The intrinsic value of CPT 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 CPT is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $105.32. 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 Camden Property Trust: (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 - Residential industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CPT'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 Camden Property Trust, this means projecting how much free cash flow the REIT - Residential will produce over the next 5-10 years, then discounting those amounts to today's dollars. CPT's ROIC of 3.3% 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 CPT, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
