Is Prologis Inc (PLD) overvalued?
On Equity Rank's model estimate, PLD trades 18% above its fair value. Prologis Inc (PLD) last closed at $126.96; the multi-method model fair value is $107.28.
| Price | Model fair value | Price vs model |
|---|---|---|
| $126.96 | $107.28 | 18% above |
What the answer rests on
- 2 of 10 valuation methods put PLD's value above its price and 8 put it below, so the methods mostly agree.
- To justify today's price, PLD's free cash flow would need to grow about 71.6% a year for ten years (a reverse discounted cash flow).
- PLD trades at 28.4 times its last year's earnings, against a median of 26.8 for 107 profitable Real Estate companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 13% above to 66% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind PLD's fair value · What prices assume · Other companies