REIT - Healthcare Facilities · NYSE
Current Price
$212.25
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Welltower Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Welltower Inc. (NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower, a real estate investment trust (REIT), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.
ROIC (TTM)
0.8%
ROE (TTM)
3.6%
FCF Yield
1.97%
Based on trailing twelve-month data, WELL shows a free cash flow per share of N/A and a ROIC of 0.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 1.97% are important context metrics when evaluating WELL's stock valuation relative to peers.
The intrinsic value of WELL 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 WELL is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $212.25. 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 Welltower 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 - Healthcare Facilities industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting WELL'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 Welltower Inc., this means projecting how much free cash flow the REIT - Healthcare Facilities will produce over the next 5-10 years, then discounting those amounts to today's dollars. WELL's ROIC of 0.8% 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 WELL, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
