Granite Real Estate Investment Trust (Granite Real Estate Investment Trust) Intrinsic Value: Projected FCF

: $75.48 (As of Today)

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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-19), Granite Real Estate Investment Trust's Intrinsic Value: Projected FCF is $75.48. The stock price of Granite Real Estate Investment Trust is $50.62. Therefore, Granite Real Estate Investment Trust's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.

The historical rank and industry rank for Granite Real Estate Investment Trust's Intrinsic Value: Projected FCF or its related term are showing as below:

GRP.U' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.66 Med: 0.84 Max: 1.04
Current: 0.67

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Granite Real Estate Investment Trust was 1.04. The lowest was 0.66. And the median was 0.84.

GRP.U's Price-to-Projected-FCF is ranked worse than
51.09% of 550 companies
in the REITs industry
Industry Median: 0.65 vs GRP.U: 0.67

Granite Real Estate Investment Trust Intrinsic Value: Projected FCF Historical Data

The historical data trend for Granite Real Estate Investment Trust's Intrinsic Value: Projected FCF 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.

Granite Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Intrinsic Value: Projected FCF

59.29

63.57

80.29

72.07

78.73

Granite Real Estate Investment Trust Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Intrinsic Value: Projected FCF																72.07	73.01	75.83	75.94	78.73

Competitive Comparison

For the REIT - Industrial subindustry, Granite Real Estate Investment Trust's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Granite Real Estate Investment Trust Price-to-Projected-FCF Distribution

For the REITs industry and Real Estate sector, Granite Real Estate Investment Trust's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Granite Real Estate Investment Trust's Price-to-Projected-FCF falls into.

Granite Real Estate Investment Trust Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)

Add all the Free Cash Flow together and divide 6 will get Granite Real Estate Investment Trust's Free Cash Flow(6 year avg) = $171.11.

Granite Real Estate Investment Trust's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF	=	(Growth Multiple	*	Free Cash Flow (6 year avg)	+	Total Stockholders Equity (Dec23)	*	0.8)	/	Shares Outstanding (Diluted Average)
	=	(10.478948627719	*	171.1064	+	3933.327	*	0.8)	/	63.356
	=	77.97

Granite Real Estate Investment Trust (NYSE:GRP.U) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Granite Real Estate Investment Trust's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF	=	Share Price	/	Intrinsic Value: Projected FCF
	=	50.62	/	77.966992478597
	=	0.65

Granite Real Estate Investment Trust Intrinsic Value: Projected FCF Related Terms

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Granite Real Estate Investment Trust (Granite Real Estate Investment Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Granite Real Estate Investment Trust (NYSE:GRP.U) » Definitions » Intrinsic Value: Projected FCF

Comparable Companies

Traded in Other Exchanges

4I7:Germany GRT.UN:Canada

Address

77 King Street West, Suite 4010, P.O. Box 159, Toronto-Dominion Centre, Toronto, ON, CAN, M5K 1H1

Website

https://www.granitereit.com

Granite Real Estate Investment Trust, or Granite, is a real estate investment trust engaged in the acquisition, development, ownership and management of of logistics, warehouse and industrial properties in North America and Europe. Granite's portfolio comprises various manufacturing, corporate office, warehouse and logistics, and product engineering facilities. The vast majority of the company's assets are logistics and distribution warehouses and multipurpose buildings split fairly evenly amongst Canadian, Austrian, and U.S. locations. Granite derives nearly all of its revenue in the form of rental income from its properties. The company's tenant is Magna International, an automotive parts and systems manufacturer, which accounts for the majority of Granite's lease income.