Dexus (DXS.AX)
Real Estate · ASX · Australia
Fundamentals
Valuation and ratings
Dexus trades at A$5.75, which is 115% below the A$12.34 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 74 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 12.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Dexus
DEXUS is a leading Australasian fully integrated real asset group, managing a high-quality Australasian real estate and infrastructure portfolio valued at 51.5 billion dollars. The Dexus Platform includes the Dexus listed portfolio and the funds management business. The 15.3 billion dollars listed portfolio includes direct and indirect ownership of office, industrial, retail, healthcare, infrastructure, alternatives and other investments. The firm manages a further 36.2 billion dollars investment in their funds management business which connects third party capital with exposure to quality specific and diversified real asset products. The funds within this business have a strong track record of delivering performance and benefit from Dexus's Platform capabilities. The Platform's 11.5 billion dollars real estate development pipeline provides the opportunity to grow both the listed and funds' portfolios and enhance future returns. The firm is deeply connected to their purpose unlock potential, create tomorrow, reflecting unique ability to create value for people, customers, investors and communities over the long term. Their sustainability approach focuses on the priority areas where they believe they can make the most impact on Customer Prosperity, Climate Action and Enhancing Communities. Dexus is supported by more than 35,800 investors from 26 countries. With more than four decades of expertise in real asset investment, funds management, asset management and development, they have a proven track record in capital and risk management and delivering returns for investors. DEXUS was incorporated in 2004 in Australia.
DXS.AX passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Dexus (DXS.AX) undervalued?
Against our discounted cash flow estimate of A$12.34, DXS.AX at A$5.75 is 115% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is DXS.AX's P/E ratio?
DXS.AX trades at 12.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.