Alexandria Real Estate Equities, Inc. (ARE) Stock Valuation — PE Analysis
REIT - Office · NYSE
Current Price
$53.77
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Prime Life Science Real Estate
ARE owns and operates highly desirable, specialized real estate in innovation hubs. This prime location and infrastructure create high barriers to entry for competitors.
↑Tenant Relationships & Ecosystem
Long-term relationships with leading life science and tech tenants, including those in the "Megacampus" model, foster stickiness. This creates an attractive ecosystem for innovation.
↑Operational Expertise & Scale
ARE's deep understanding of the life science sector's unique real estate needs and its significant scale provide an operational advantage. This allows for efficient development and management.
INVESTMENT RISKS
↓Concentration in Innovation Hubs
ARE's focus on specific life science clusters, while a strength, also presents a risk if those regions experience economic downturns or regulatory changes.
↓Leasing Market Volatility
While leasing strength is noted, the broader demand for office and lab space can be cyclical. Economic slowdowns could impact occupancy and rental rates.
↓Capital Expenditure Requirements
Developing and maintaining state-of-the-art life science facilities requires significant ongoing capital investment. Unexpected cost increases could strain financial resources.
Customize the ARE PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Alexandria Real Estate Equities, Inc. respond.
Open PE Calculator for ARECompany Overview
Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500® real estate investment trust, stands as the pioneering and most seasoned entity in the specialized domain of urban office properties. Since its inception in 1994, Alexandria has uniquely focused on the ownership, operation, and development of integrated campuses tailored for the life science, technology, and agtech sectors, strategically positioned within premier innovation ecosystems. By December 31, 2020, the company commanded a market capitalization of $31.9 billion and managed an extensive North American asset portfolio totaling 49.7 million square feet. This substantial base encompasses 31.9 million RSF of operational properties, 3.3 million RSF of premium Class A spaces currently under construction, 7.1 million RSF designated for near-to-mid-term development and refurbishment, and an additional 7.4 million SF earmarked for future projects. Alexandria has cultivated a significant footprint across vital innovation hubs such as Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle. Its established expertise lies in crafting superior Class A facilities within these urban campuses, fostering dynamic and collaborative environments. These spaces are instrumental in empowering innovative tenants to successfully attract and retain world-class professionals, thereby stimulating productivity, efficiency, creativity, and overall achievement. Furthermore, Alexandria extends its support to transformative life science, technology, and agtech companies through its dedicated venture capital platform. This distinct business model, coupled with rigorous underwriting practices, ensures a diverse and high-caliber tenant roster, ultimately driving elevated occupancy rates, extended lease durations, robust rental revenues, superior financial returns, and enhanced long-term asset appreciation.
Financial Metrics — ARE PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
0.01
Earnings Yield
-10.10%
ROE (TTM)
-6.3%
Revenue/Share (TTM)
$15.39
Dividend Yield
6.47%
Debt/Equity
0.82x
Frequently Asked Questions
What is the PE ratio of ARE?
The trailing twelve-month PE ratio of ARE reflects how much investors pay per dollar of Alexandria Real Estate Equities, Inc.'s earnings. This metric is most useful when compared to REIT - Office peers and the company's own historical range.
Is ARE overvalued based on PE ratio?
ARE's PE of -8.6x combined with a PEG ratio of 0.01 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 - Office, a DCF analysis may be more appropriate.
How do I value ARE stock using PE ratio?
To value Alexandria Real Estate Equities, Inc. using PE: (1) Compare the current PE (-8.6x) against the REIT - Office median to assess relative pricing, (2) check the PEG ratio (0.01) 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.
What is the PEG ratio of ARE?
ARE's PEG ratio is 0.01, calculated by dividing the PE ratio (-8.6x) 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.
Should I use PE ratio or DCF for ARE stock valuation?
PE ratio gives a quick relative read — how ARE is priced versus REIT - Office peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ARE DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Real Estate valuationsP/E and DCF value ARE with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.