Welltower Inc. (WELL) Fair Value & PE Analysis
REIT - Healthcare Facilities · NYSE
Current Price
$214.23
PE Ratio (TTM)
106.5x
Intrinsic Value
$168.42
-27.2% margin of safety
What Is Welltower Inc.'s Fair Value?
As of 2026-06-12, applying a 50.0x earnings multiple to Welltower Inc.'s (WELL) earnings per share of $2.01 yields a fair value estimate of $168.42 per share, versus a market price of $214.23.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $146.66 to $192.63. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · WELL intrinsic value (DCF view)
Is Welltower Inc. (WELL) Overvalued?
At $214.23, WELL trades above its PE-based fair value estimate, meaning the market pays a premium over the applied earnings multiple. By this model the stock looks expensive unless earnings grow into the price.
COMPETITIVE MOAT
↑Prime Healthcare Property Portfolio
Welltower owns a high-quality, diversified portfolio of healthcare facilities in attractive markets. This strategic asset base provides a durable competitive advantage and drives consistent rental income.
↑Strong Operator Relationships
The company cultivates deep, long-term relationships with leading healthcare operators. These partnerships ensure high occupancy rates and operational efficiency across its properties.
↑Dividend Growth Signaling Strength
The recent 15% dividend hike signals robust cash flow and management's confidence in sustained profitability. This rewards investors and reflects the company's financial health.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a REIT, Welltower is susceptible to rising interest rates, which can increase borrowing costs and potentially depress property valuations. This impacts profitability and future growth.
↓Regulatory and Reimbursement Changes
Healthcare facility operators face evolving regulations and reimbursement policies from government programs. Changes could negatively affect tenant profitability and their ability to pay rent.
↓Senior Housing Demand Fluctuations
While senior housing is a growth area, demand can be influenced by economic conditions and demographic shifts. Unexpected downturns could impact occupancy and rental income.
Base case
WELL base case PE valuation
Intrinsic Value
$168.42
Margin of safety
-27.2%
Expected annual return
-4.7%
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 WELL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Welltower Inc. respond.
Open PE Calculator for WELLCompany Overview
Welltower Inc. (NYSE:WELL), an S&P 500 company based in Toledo, Ohio, is a leader in reshaping healthcare infrastructure. This Real Estate Investment Trust (REIT) strategically collaborates with premier operators in seniors housing, post-acute care, and health systems. Their core mission is to finance the vital property assets required to expand innovative care delivery models, thereby enhancing overall public wellness and healthcare experiences. Welltower's portfolio encompasses a variety of properties, including seniors housing, post-acute communities, and outpatient medical facilities, all situated primarily within key, rapidly growing markets across the United States, Canada, and the United Kingdom.
Financial Metrics — WELL PE Stock Valuation Data
PE Ratio (TTM)
106.5x
PEG Ratio
6.21
Earnings Yield
0.94%
ROE (TTM)
3.5%
Revenue/Share (TTM)
$16.55
Dividend Yield
1.38%
Debt/Equity
0.46x
Frequently Asked Questions
What is the PE ratio of WELL?
The trailing twelve-month PE ratio of WELL reflects how much investors pay per dollar of Welltower Inc.'s earnings. This metric is most useful when compared to REIT - Healthcare Facilities peers and the company's own historical range.
Is WELL overvalued based on PE ratio?
WELL's PE of 106.5x combined with a PEG ratio of 6.21 provides a growth-adjusted perspective. A PEG above 2.0 suggests WELL 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 WELL stock using PE ratio?
To value Welltower Inc. using PE: (1) Compare the current PE (106.5x) against the REIT - Healthcare Facilities median to assess relative pricing, (2) check the PEG ratio (6.21) 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 WELL?
WELL's PEG ratio is 6.21, calculated by dividing the PE ratio (106.5x) 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 WELL stock valuation?
PE ratio gives a quick relative read — how WELL 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 WELL 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 WELL 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.