Target Healthcare REITLSE:THRL -0.37%32 PEG Ratio is 16.13 as of Jul. 01, 2026, which is 95% above its 10-year median of 8.27. GuruFocus rates LSE:THRL with a GF Score™ of 32/100 and a GF Value™ of £0.88 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 278 REITs companies, Target Healthcare REIT ranks worse than 85.61% on this metric.
PE Ratio without NRI / 5-Year Book Value Growth Rate*
* The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Target Healthcare REIT's PEG Ratio or its related term are showing as below:
LSE:THRL'
s PEG Ratio Range Over the Past 10 Years
Min: 4.95 Med: 8.27 Max: 38.75
Current: 16.13
During the past 12 years, Target Healthcare REIT's highest PEG Ratio was 38.75. The lowest was 4.95. And the median was 8.27.
LSE:THRL's PEG Ratio is ranked worse than 85.61% of 278
companies
in the REITs industry
Industry Median: 3.4
vs LSE:THRL: 16.13
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Target Healthcare REIT (LSE:THRL) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
* 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.
For the REIT - Healthcare Facilities subindustry, Target Healthcare REIT's PEG Ratio, along with its competitors' market caps and PEG Ratio 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.
Target Healthcare REIT PEG Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Target Healthcare REIT's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Target Healthcare REIT's PEG Ratio falls into.
* 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.
* Note: The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Target Healthcare REIT (LSE:THRL) has a PEG Ratio of 16.13 as of Jul. 01, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Target Healthcare REIT and its competitors. This is 95% above median its historical median of 8.27. Over the past decade, Target Healthcare REIT's PEG Ratio has ranged from 4.95 to 38.75. According to the industry distribution chart, Target Healthcare REIT ranks #238 out of 278 companies in the REITs industry, placing it in the top 85.6%.
Is Target Healthcare REIT's PEG Ratio too high?
Target Healthcare REIT's current PEG Ratio of 16.13 is 95% above median its 10-year median of 8.27. Over the past 10 years, this metric has ranged from a low of 4.95 to a high of 38.75. The REITs industry median PEG Ratio is 3.40. Target Healthcare REIT's value of 16.13 is 374.4% above this industry median. Based on the distribution chart, Target Healthcare REIT ranks #238 out of 278 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Target Healthcare REIT has a GF Score™ of 32/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Target Healthcare REIT's PEG Ratio compare to WELL and VTR?
According to the REITs industry distribution chart, Target Healthcare REIT ranks #238 out of 278 companies for PEG Ratio. This places Target Healthcare REIT in the lower half of its industry. The industry median PEG Ratio is 3.40. Target Healthcare REIT's value of 16.13 is 374.4% above this benchmark. Historically, Target Healthcare REIT's own PEG Ratio has ranged from 4.95 to 38.75 over the past decade. While the company's 10-year median is 8.27 vs. the industry median of 3.40, Target Healthcare REIT has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a REITs company?
The median PEG Ratio among REITs companies is 3.40, based on 278 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Target Healthcare REIT's current PEG Ratio of 16.13 is 374.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Target Healthcare REIT and its competitors. For the REITs industry, the median PEG Ratio is 3.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Target Healthcare REIT's current PEG Ratio is 16.13, which is 95% above median its own 10-year median of 8.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Target Healthcare REIT stock overvalued right now?
Based on GuruFocus' analysis, Target Healthcare REIT (LSE:THRL) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.88, compared to a current price of £1.08 — trading 23.2% above its estimated fair value. The current PEG Ratio is 16.13, which is 95% above median its 10-year median of 8.27 and 374.4% above the REITs industry median of 3.40. Target Healthcare REIT's overall GF Score™ is 32/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Target Healthcare REIT (LSE:THRL), the current PEG Ratio is 16.13 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Target Healthcare REIT (LSE:THRL) Overvalued in 2026?
Based on GuruFocus' analysis, Target Healthcare REIT stock appears to be overvalued.
The current stock price of £1.08 is trading 23.2% above its estimated GF Value™ of £0.88.
GuruFocus considers Target Healthcare REIT to be Modestly Overvalued.
Key valuation signals for LSE:THRL:
PEG Ratio: 16.13 (95% above median its 10-year median of 8.27)
GF Value™: £0.88 vs. price of £1.08 (23.2% above fair value)
Industry Position: 374.4% above the REITs median (#238 of 278)
No single metric tells the full story. See the LSE:THRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Target Healthcare REIT PLC is an investment company that acts as a long-term investor in care homes in the United Kingdom. The investment objective of the company is to provide shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified portfolio of freehold and long-leasehold care homes, which are let to care home operators, and other healthcare assets in the United Kingdom.
32GF Score
Get the complete analysis for LSE:THRL
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