Healthpeak Properties, Inc. (PEAK) Stock Valuation — PE Analysis
REIT - Healthcare Facilities · NYSE
Current Price
$17.10
PE Ratio (TTM)
53.4x
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Prime Healthcare Real Estate Locations
PEAK owns strategically located, high-quality facilities in desirable markets. This prime real estate is difficult and time-consuming for competitors to replicate.
↑Long-Term Tenant Relationships
The company cultivates enduring relationships with healthcare providers. These long-term leases create sticky customer bases and predictable revenue streams.
↑Specialized Healthcare Property Expertise
PEAK possesses deep knowledge in developing and managing specialized healthcare properties. This niche expertise creates a barrier to entry for general real estate investors.
INVESTMENT RISKS
↓Healthcare Regulatory Changes
Evolving healthcare regulations can impact tenant operations and demand for specific facility types. This creates uncertainty for PEAK's property portfolio.
↓Tenant Concentration Risk
While relationships are long-term, a significant portion of revenue could be concentrated with a few large tenants. The loss of a major tenant would be impactful.
↓Property Obsolescence and Redevelopment Needs
Healthcare facilities require ongoing investment to remain modern and competitive. Failure to adapt to new technologies or patient care models could lead to obsolescence.
Base case
PEAK base case PE valuation
Base case assumptions: -19.4% annual earnings growth, 27x target PE, 10% discount rate, 5 year projection. Data as of 2024-03-01.
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 PEAK PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Healthpeak Properties, Inc. respond.
Open PE Calculator for PEAKCompany Overview
Healthpeak Properties, Inc., an S&P 500 constituent, operates as a fully integrated real estate investment trust (REIT). The company specializes in the acquisition and development of premium properties across three private-pay healthcare segments: Life Science, Medical Office, and Senior Housing. This focus is meticulously crafted to deliver stability amidst the cyclical nature of the industry. Healthpeak leverages its profound expertise in the healthcare property market, coupled with an ambitious outlook for sustained, long-term expansion.
Financial Metrics — PEAK PE Stock Valuation Data
PE Ratio (TTM)
53.4x
PEG Ratio
n/m
Earnings Yield
3.74%
ROE (TTM)
5.8%
Revenue/Share (TTM)
$4.13
Dividend Yield
7.02%
Frequently Asked Questions
What is the PE ratio of PEAK?
The trailing twelve-month PE ratio of PEAK reflects how much investors pay per dollar of Healthpeak Properties, Inc.'s earnings. This metric is most useful when compared to REIT - Healthcare Facilities peers and the company's own historical range.
Is PEAK overvalued based on PE ratio?
PEAK's PE of 53.4x combined with a PEG ratio of -0.22 provides a growth-adjusted perspective. PEAK has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 PEAK stock using PE ratio?
To value Healthpeak Properties, Inc. using PE: (1) Compare the current PE (53.4x) against the REIT - Healthcare Facilities median to assess relative pricing, (2) check the PEG ratio (-0.22) 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 PEAK?
PEAK's PEG ratio is -0.22, calculated by dividing the PE ratio (53.4x) by the expected earnings growth rate. Because PEAK has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PEAK stock valuation?
PE ratio gives a quick relative read — how PEAK 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 PEAK 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 PEAK with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2024-03-01. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.