Current Price
$39.40
PE Ratio (TTM)
26.3x
Intrinsic Value
$36.47
-8.0% margin of safety
COMPETITIVE MOAT
↑Prime Location Portfolio
UDR owns a portfolio of apartment communities in desirable, high-barrier-to-entry urban and suburban markets. This strategic geographic focus provides a competitive advantage in attracting and retaining residents.
↑Resident Retention Focus
Strong resident retention, evidenced by positive renewal rates, indicates resident satisfaction and loyalty. This reduces turnover costs and ensures a stable revenue stream.
↑Capital Allocation Strategy
The expanded share repurchase program and strategic capital allocation demonstrate a commitment to shareholder value. This can enhance earnings per share and signal confidence in the company's future.
INVESTMENT RISKS
↓Rent Growth Sensitivity
Weak rent trends and sector sentiment can negatively impact UDR's revenue growth. This makes the company vulnerable to broader economic conditions affecting housing demand.
↓Rising Operating Costs
Rent gains are being offset by rising operating costs, pressuring profitability. This requires careful expense management to maintain margins.
↓Dividend Policy Shift
The shift to a monthly dividend, while potentially appealing to some investors, may not be sufficient to drive share price appreciation. This suggests market skepticism about its immediate impact.
Base case
UDR base case PE valuation
A base case PE valuation for UDR estimates a fair value of about $36.47 per share, against a current price of $39.4. The model assumes 4.4% annual earnings growth, a 26x target PE multiple, and a 10% discount rate.
Intrinsic Value
$36.47
Margin of safety
-8.0%
Expected annual return
-1.5%
Base case assumptions: 4.4% annual earnings growth, 26x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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.
Customize the UDR PE valuation
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 UDRCompany Overview
UDR, 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.
Financial Metrics — UDR PE Stock Valuation Data
PE Ratio (TTM)
26.3x
PEG Ratio
0.08
Earnings Yield
3.81%
ROE (TTM)
14.9%
Revenue/Share (TTM)
$5.24
Dividend Yield
4.38%
Debt/Equity
1.78x
Frequently Asked Questions
What is the PE ratio of UDR?
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.
Is UDR overvalued based on PE ratio?
UDR's PE of 26.3x combined with a PEG ratio of 0.08 provides a growth-adjusted perspective. A PEG below 1.0 suggests UDR 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 - Residential, a DCF analysis may be more appropriate.
How do I value UDR stock using PE ratio?
To value UDR, Inc. using PE: (1) Compare the current PE (26.3x) against the REIT - Residential median to assess relative pricing, (2) check the PEG ratio (0.08) 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 UDR?
UDR's PEG ratio is 0.08, calculated by dividing the PE ratio (26.3x) 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 UDR stock valuation?
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 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 UDR 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 UDR 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.