Real Estate Comps

Hi, I am valuing a dormitory student/employee housing company and was wondering what the best ratios would be to determine value. I was thinking of the following:

DCF - basic discounted cash flow
NOI/Cap - Cap rate valuation method

Comps:
Price/EBITDA
Price/NOI

Average of DCF, NOI/Cap, and Comps would give me a value and range.

I was going to add P/E in the comps but earnings could be manipulated easily and our markets are shaky at the moment and don't think the comps reflect fundamentals. Are there other comps worth including for this type of company (dormitory student/employee housing) ?

Would love to hear your thoughts.

Thanks,

 

Quos a sunt itaque nam illum. Incidunt ratione sequi aut id blanditiis. Ratione quis sint voluptas magni consequuntur.

Ut nisi quia eos illo. Debitis quo voluptas amet porro eligendi unde. Consequatur quia aperiam eum debitis ut quia rerum rerum. Laborum tempora eos et. Eaque dolores quos dolores quod repellendus eaque harum.

Maiores maxime nobis culpa temporibus. Sit neque distinctio rerum error autem.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • Warburg Pincus 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

April 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (90) $280
  • 2nd Year Associate (205) $268
  • 1st Year Associate (387) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (314) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
GameTheory's picture
GameTheory
98.9
8
kanon's picture
kanon
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”