Alexandria Real Estate Equities, Inc. (ARE) Stock Valuation — PE Analysis
REIT - Office · NYSE
Current Price
$53.17
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Prime Life Science Locations
ARE owns and develops high-quality, strategically located real estate in leading life science clusters. This prime positioning attracts and retains top-tier tenants.
↑Long-Term Tenant Relationships
The company fosters strong, long-term relationships with its life science and technology tenants. This leads to high occupancy and predictable rental income streams.
↑Specialized Development Expertise
ARE possesses deep expertise in developing and managing specialized facilities required by life science and tech companies. This niche capability is difficult for competitors to replicate.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a REIT, ARE is sensitive to rising interest rates, which can increase borrowing costs and impact property valuations. This can affect profitability and growth.
↓Tenant Concentration Risk
While relationships are strong, a significant portion of revenue may depend on a few large tenants. The loss of a major tenant could materially impact earnings.
↓Operational Headwinds
Recent reports indicate new operational headwinds are emerging. These challenges could impact the company's ability to manage costs and maintain growth momentum.
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
0.02
Earnings Yield
-10.22%
ROE (TTM)
-6.3%
Revenue/Share (TTM)
$15.39
Dividend Yield
7.67%
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 -9.8x combined with a PEG ratio of 0.02 provides a growth-adjusted perspective. A PEG below 1.0 suggests ARE may be undervalued relative to its 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 (-9.8x) against the REIT - Office median to assess relative pricing, (2) check the PEG ratio (0.02) 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 0.02, calculated by dividing the PE ratio (-9.8x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.