REIT - Residential · NYSE
Current Price
$129.71
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Mid-America Apartment Communities, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
MAA, an S&P 500 company, is a real estate investment trust, or REIT, focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities in the Southeast, Southwest, and Mid-Atlantic regions of the United States. As of December 31, 2020, MAA had ownership interest in 102,772 apartment units, including communities currently in development, across 16 states and the District of Columbia.
ROIC (TTM)
620.8%
ROE (TTM)
7.0%
FCF Yield
4.76%
Based on trailing twelve-month data, MAA shows a free cash flow per share of N/A and a ROIC of 620.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.76% are important context metrics when evaluating MAA's stock valuation relative to peers.
The intrinsic value of MAA 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 MAA is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $129.71. 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 Mid-America Apartment Communities, 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 - Residential industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MAA'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 Mid-America Apartment Communities, Inc., 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. MAA's ROIC of 620.8% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MAA, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
