Clipper Realty (NYSE:CLPR) Intrinsic Value: DCF (Earnings Based)

: $-5.62 (As of Today)

View and export this data going back to 2017. Start your Free Trial

As of today (2023-06-08), Clipper Realty's intrinsic value calculated from the Discounted Earnings model is $-5.62.

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Clipper Realty's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety (Earnings Based) using Discounted Earnings model for Clipper Realty is N/A.

The historical rank and industry rank for Clipper Realty's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:

CLPR's Price-to-DCF (Earnings Based) is not ranked ^*
in the REITs industry.
Industry Median: 1.21
* Ranked among companies with meaningful Price-to-DCF (Earnings Based) only.

Clipper Realty Intrinsic Value: DCF (Earnings Based) Historical Data

The historical data trend for Clipper Realty's Intrinsic Value: DCF (Earnings Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Clipper Realty Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Intrinsic Value: DCF (Earnings Based)

Clipper Realty Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Intrinsic Value: DCF (Earnings Based)																-	-	-	-	-

Clipper Realty Intrinsic Value: DCF (Earnings Based) Calculation

This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 10%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. We used the 10-Year Treasury Constant Maturity Rate as the risk free rate and rounded up to the nearest integer, then added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 5%
Growth Rate in the growth stage = average earnings growth rate in the past 10 years. If it is higher than 20%, we use 20%. If it is less than 5%, we use 5% instead. => For companies with Average Earnings Growth Rate in the past 10 years less than 5%, GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. EPS without NRI: eps without nri = $-0.450.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Clipper Realty's Intrinsic Value: DCF (Earnings Based) for today is calculated as:

Intrinsic Value: DCF (Earnings Based)	=	EPS without NRI	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.1) = 0.95454545454545
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.1) = 0.94545454545455

Intrinsic Value: DCF (Earnings Based)

EPS without NRI

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

EPS without NRI

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

-0.450

12.485

-5.62

Margin of Safety % (DCF Earnings Based)	=	(Intrinsic Value: DCF (Earnings Based)	-	Current Price)	/	Intrinsic Value: DCF (Earnings Based)
	=	(-5.62	-	5.66)	/	-5.62
	=	N/A

Clipper Realty (NYSE:CLPR) Intrinsic Value: DCF (Earnings Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.

Be Aware

What you need to know about Discounted Earnings model:

1. The Discounted Earnings model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that are relatively consistent performers.
4. The Discounted Earnings model works poorly for inconsistent performers like cyclicals.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Clipper Realty Intrinsic Value: DCF (Earnings Based) Related Terms

Thank you for viewing the detailed overview of Clipper Realty's Intrinsic Value: DCF (Earnings Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Clipper Realty (NYSE:CLPR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Clipper Realty Inc (NYSE:CLPR) » Definitions » Intrinsic Value: DCF (Earnings Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

4611 12th Avenue, Suite 1L, Brooklyn, NY, USA, 11219

Website

https://www.clipperrealty.com

Clipper Realty Inc is a self-administered and self-managed real estate company. It acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. It has classified its reporting segments into commercial and residential rental properties. Clipper derives its revenue mostly from a Residential segment.

Executives

Michael Charles Frenz	officer: Chief Financial Officer	C/O CLIPPER REALTY INC, 4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Howard M Lorber	director	4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Roberto Angelo Verrone	director	200 HIGHLAND AVENUE, SHORT HILLS NJ 07078
Robert Jay Ivanhoe	director	GREENBERG TRAURIG, LLP, 200 PARK AVENUE, NEW YORK NY 10166
Richard N Burger	director	P.O. BOX 28543, SCOTTSDALE AZ 85255
Harmon Spolan	director	OOZEN O CONNOR, 1900 MARKET ST 4TH FL, PHILADELPHIA PA 19103
Lawrence E Kreider	officer: Chief Financial Officer	600 GRANT STREET, SUITE 900, DENVER CO 80203
Sam Levinson	director, 10 percent owner	9190 PRIORITY WAY WEST DRIVE, SUITE 300, INDIANAPOLIS IN 46240
David Bistricer	director, 10 percent owner, officer: Co-Chairman and CEO	PO BOX 407, BROOKLIN NY 11219
Jacob Bistricer	officer: Chief Operating Officer	4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Jacob Schwimmer	officer: Chief PM Offcier	1738 47TH STREET, BROOKLYN NY 11204