The GPT Group (GPT.AX)

Real Estate · ASX · Australia

A$4.96-2.17% today

Fundamentals

Market capA$9.37B

P/E ratio9.6

Dividend yield4.96%

Revenue growth (YoY)-5.2%

Profit margin94.5%

Return on equity9.5%

52-week rangeA$4.42 to A$5.75

Valuation and ratings

DCF fair valueA$10.76

Upside to fair value+116.9%

Analyst target (mean)A$5.47

Analyst rangeA$5.04 to A$6.00

Analysts covering12

Consensus viewbuy

Moat score68/100

Overall rating85/100, Strong Buy

The GPT Group trades at A$4.96, which is 117% below the A$10.76 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 68 out of 100, which is a moat, but not a deep one. 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 9.6 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 The GPT Group

The GPT Group is one of Australia's leading property groups, with assets under management of 34.1 billion US dollars across a portfolio of high quality retail, office and logistics assets. The GPT Group (GPT) is a stapled entity comprised of the General Property Trust (the Trust) and its controlled entities and GPT Management Holdings Limited (the Company) and its controlled entities. General Property Trust is a registered scheme, registered and domiciled in Australia. GPT RE Limited (GPTRE) is the Responsible Entity of the General Property Trust. GPT Management Holdings Limited (GPTMHL) is a company limited by shares, incorporated and domiciled in Australia. GPTRE Limited is a wholly owned entity of GPT Management Holdings Limited. The GPT Group was incorporated in 1959 in Australia.

Industry: REIT - DiversifiedHQ: Australia

GPT.AX passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Undervalued on cash flow

Companies trading at least 25% below what our discounted cash flow model says the future cash is worth today.

Quality at a fair price

Good businesses, not cheap ones. A wide moat and a strong rating, at a multiple that has not run away.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Highest conviction

The best overall scores in our universe, restricted to companies where we actually hold enough data to have an opinion worth reading.

Data centres and power

AI's binding constraint turned out not to be chips. It is electricity, and the grid was not built for this.

Dividend aristocrats

Companies with long, unbroken records of raising their dividend. The record is the point: it is evidence, not a promise.

Common questions

Is The GPT Group (GPT.AX) undervalued?

Against our discounted cash flow estimate of A$10.76, GPT.AX at A$4.96 is 117% 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 GPT.AX's P/E ratio?

GPT.AX trades at 9.6 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.