ESRT Intrinsic Value – Empire State Realty Trust Downgraded on Valuation by Evercore ISI

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Empire State Realty ($NYSE:ESRT) Trust (ESRT) has recently been downgraded by Evercore ISI due to its valuation, causing its share price to drop significantly. ESRT is a real estate investment trust that owns, operates, and manages office and retail properties, as well as the iconic Empire State Building, in the Tri-State area. The company offers office, retail, and residential space, as well as data centers, parking garages, and storage facilities. Evercore ISI has cited ESRT’s high valuation as the main reason for the downgrade. The company’s share price had been soaring to record highs due to the booming real estate market.

However, Evercore ISI believes that ESRT’s valuation is no longer sustainable in the current economic climate and has downgraded the stock to “underperform”. The downgrade has sent shockwaves through the real estate market and ESRT’s share price is expected to remain under pressure in the near future. Investors should watch closely to see if the company is able to turn things around and get back on track.

Price History

At market open, ESRT opened at its lowest level in a month at $8.4 and rose to close at $8.6 for the day. This downgrade is a reflection of the current market sentiment surrounding real estate investment trusts, which has been in a state of flux in recent months. Going forward, it remains to be seen if the downgrade will have a lasting impact on ESRT’s share price. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for ESRT. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for ESRT. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for ESRT. More…

Key Ratios Snapshot

Some of the financial key ratios for ESRT are shown below. More…

Analysis – ESRT Intrinsic Value

At GoodWhale, we take a deep dive into the financials of EMPIRE STATE REALTY TRUST. After our analysis, we’ve determined the intrinsic value of their share to be around $9.4. This was calculated using our proprietary Valuation Line – a tool designed to give an accurate estimate of a company’s worth. This is a fair price, however it is undervalued by 8.7%. This presents an opportunity for investors looking to get in on the stock at a bargain. More…

Peers

ESRT’s portfolio includes the Empire State Building, the world’s most famous office building. The company also owns and manages a retail portfolio that comprises some of New York’s most iconic and historic shopping destinations. ESRT’s competitors include SL Green Realty Corp, Vornado Realty Trust, Hudson Pacific Properties Inc.

– SL Green Realty Corp ($NYSE:SLG)

SL Green Realty Corp is a real estate investment trust that focuses on acquiring, managing, and developing office properties in the United States. As of December 31, 2020, the company owned interests in 108 Manhattan buildings totaling 54.4 million square feet.

– Vornado Realty Trust ($NYSE:VNO)

Vornado Realty Trust is a publicly traded real estate investment trust (REIT) that owns, manages and develops commercial real estate, primarily in the United States. The company’s portfolio includes office buildings, retail space, hotels and other properties. Vornado’s market capitalization is $4.44 billion as of 2022. The company’s properties are located in major markets across the United States, including New York City, Washington, D.C., Chicago and San Francisco.

– Hudson Pacific Properties Inc ($NYSE:HPP)

Hudson Pacific Properties Inc is a real estate investment trust that focuses on acquiring, developing, and operating office properties in the United States. As of December 31, 2020, the company owned and operated approximately 39 million square feet of office space. Hudson Pacific Properties Inc is headquartered in Los Angeles, California.

Summary

Empire State Realty Trust (ESRT) recently saw its stock suffer a sharp decline following a downgrade from investment banking firm Evercore ISI. The downgrade was based on the valuation of ESRT stocks, which the analysts believe is too high compared to its peers. This analysis highlights the importance of careful and thorough research for investors interested in ESRT. It is important to be aware of the different variables that influence the value of a company’s stock, such as earnings, debt ratios, market sentiment, and industry trends.

Investors should also consider the current economic climate when evaluating stocks, as it can provide insight into a company’s future performance. Furthermore, investors must understand the volatility of the markets and develop strategies to minimize risk. By taking the time to gain a deeper understanding of ESRT’s financials and potential risks, investors can make more informed decisions.