Ventas, Inc. (VTR) Stock Valuation — PE Analysis
REIT - Healthcare Facilities · NYSE
Current Price
$84.60
PE Ratio (TTM)
154.7x
Intrinsic Value
$46.09
-83.6% margin of safety
COMPETITIVE MOAT
↑Senior Housing Portfolio Scale
Ventas possesses a large, diversified portfolio of senior housing properties. This scale provides operational efficiencies and a strong negotiating position with operators.
↑Long-Term Operator Relationships
Established, long-standing relationships with key senior housing and healthcare operators create stability. These partnerships are built on trust and shared success.
↑Diversified Healthcare Exposure
Beyond senior housing, Ventas's investments in medical office buildings and life science facilities offer diversification. This reduces reliance on a single healthcare segment.
INVESTMENT RISKS
↓Senior Housing Occupancy Volatility
Senior housing occupancy can be sensitive to economic conditions and public health concerns. Fluctuations impact rental income and property valuations.
↓Interest Rate Sensitivity
As a REIT, Ventas is susceptible to rising interest rates. Higher borrowing costs can reduce profitability and property values.
↓Regulatory and Reimbursement Changes
Changes in healthcare regulations and reimbursement policies can affect operator profitability. This indirectly impacts Ventas's rental income.
Base case
VTR base case PE valuation
A base case PE valuation for VTR estimates a fair value of about $46.09 per share, against a current price of $84.6. The model assumes 20.0% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$46.09
Margin of safety
-83.6%
Expected annual return
-11.4%
Base case assumptions: 20.0% annual earnings growth, 50x 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 VTR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Ventas, Inc. respond.
Open PE Calculator for VTRCompany Overview
As an S&P 500 company, Ventas operates strategically at the nexus of the dynamic healthcare and real estate industries. We stand as one of the world's foremost Real Estate Investment Trusts (REITs), utilizing financial capital to unlock property value. Our partnerships extend to leading care providers, developers, research and medical institutions, innovators, and healthcare organizations, all of whom benefit from the significant demographic trend of an aging population. For over two decades, Ventas has pursued a steadfast and effective strategy: maintaining a high-quality, diverse portfolio of assets and varied capital streams to skillfully navigate market fluctuations. A dedicated and experienced team collaborates with industry-leading partners to generate consistent, increasing cash flows and superior returns on a strong balance sheet, ultimately enriching Ventas's shareholders. As of September 30, 2020, Ventas either owned outright or managed through unconsolidated joint ventures approximately 1,200 properties.
Financial Metrics — VTR PE Stock Valuation Data
PE Ratio (TTM)
154.7x
PEG Ratio
2.22
Earnings Yield
0.65%
ROE (TTM)
2.1%
Revenue/Share (TTM)
$12.88
Dividend Yield
2.32%
Debt/Equity
0.97x
Frequently Asked Questions
What is the PE ratio of VTR?
The trailing twelve-month PE ratio of VTR reflects how much investors pay per dollar of Ventas, Inc.'s earnings. This metric is most useful when compared to REIT - Healthcare Facilities peers and the company's own historical range.
Is VTR overvalued based on PE ratio?
VTR's PE of 154.7x combined with a PEG ratio of 2.22 provides a growth-adjusted perspective. A PEG above 2.0 suggests VTR may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Healthcare Facilities, a DCF analysis may be more appropriate.
How do I value VTR stock using PE ratio?
To value Ventas, Inc. using PE: (1) Compare the current PE (154.7x) against the REIT - Healthcare Facilities median to assess relative pricing, (2) check the PEG ratio (2.22) 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 VTR?
VTR's PEG ratio is 2.22, calculated by dividing the PE ratio (154.7x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for VTR stock valuation?
PE ratio gives a quick relative read — how VTR is priced versus REIT - Healthcare Facilities 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 VTR 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 VTR 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.