Current Price
$33.32
PE Ratio (TTM)
21.0x
Intrinsic Value
$30.16
-10.5% margin of safety
COMPETITIVE MOAT
↑Prime Location Portfolio
UDR owns a portfolio of apartment communities in high-demand, supply-constrained urban and suburban markets. This strategic positioning creates barriers to entry for new competitors.
↑Scale and Operational Efficiency
The company's large scale allows for operational efficiencies in property management, leasing, and maintenance. This leads to cost advantages over smaller operators.
↑Brand Reputation and Tenant Loyalty
UDR has built a reputation for quality housing and reliable service. This can foster tenant loyalty and reduce turnover, leading to more stable rental income.
INVESTMENT RISKS
↓Economic Downturn Impact on Demand
A recession could lead to job losses and reduced consumer spending, negatively impacting rental demand and UDR's occupancy rates and rental income.
↓Increased Competition from New Supply
While UDR focuses on supply-constrained markets, new apartment construction can still increase competition, potentially pressuring rental rates and occupancy.
↓Regulatory and Zoning Changes
Changes in local rent control laws, zoning regulations, or property taxes could negatively affect UDR's operating costs and profitability.
Base case
At a current price of $33.32, the base case PE valuation puts UDR fair value near $30.16 per share. That figure assumes 2.6% yearly earnings growth, a target PE multiple of 20.7x, and a 10% discount rate.
Intrinsic Value
$30.16
Margin of safety
-10.5%
Expected annual return
-2.0%
Base case assumptions: 2.6% annual earnings growth, 20.7x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for UDR, Inc. respond.
Open PE Calculator for UDRUDR, Inc. (NYSE: UDR), a distinguished S&P 500 company, stands as a premier multifamily real estate investment trust. The company boasts a proven history of generating exceptional and reliable returns for its investors, achieving this through the astute management, acquisition, disposition, development, and redevelopment of appealing real estate properties situated in key U.S. markets. As of September 30, 2020, UDR's extensive portfolio included ownership or partial ownership in 51,649 apartment homes, with an additional 1,031 units currently under development. With over 48 years in operation, UDR has consistently delivered long-term value to its shareholders, provided superior service to its residents, and fostered a high-quality experience for its associates.
PE Ratio (TTM)
21.0x
PEG Ratio
0.07
Earnings Yield
4.84%
ROE (TTM)
16.3%
Revenue/Share (TTM)
$5.28
Dividend Yield
3.92%
Debt/Equity
2.04x
The trailing twelve-month PE ratio of UDR reflects how much investors pay per dollar of UDR, Inc.'s earnings. This metric is most useful when compared to REIT - Residential peers and the company's own historical range.
UDR's PE of 21.0x combined with a PEG ratio of 0.07 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Residential, a DCF analysis may be more appropriate.
To value UDR, Inc. using PE: (1) Compare the current PE (21.0x) against the REIT - Residential median to assess relative pricing, (2) check the PEG ratio (0.07) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
UDR's PEG ratio is 0.07, calculated by dividing the PE ratio (21.0x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
PE ratio gives a quick relative read — how UDR is priced versus REIT - Residential peers. DCF provides an absolute value based on projected free cash flows. For UDR, with a strong ROE of 16.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
P/E and DCF value UDR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.