CareTrust REIT, Inc.

CTRE ·Real Estate, REIT - Diversified, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $44.95
Market Price $36.45
Undervalued By 18.9%

Method: 10-year equity (AFFO) discount model: ~$400.4M estimated AFFO base ($484.9M TTM EBITDA less ~$60.5M estimated cash interest expense and ~$24M estimated maintenance capex, reflecting low triple-net-lease capital needs); 8% AFFO growth years 1-5; 4% years 6-10; 8% discount rate; 3% terminal growth; 236.29M shares outstanding.

Reasoning: CareTrust is a triple-net healthcare REIT with an active acquisition pipeline (including its recent large UK portfolio deal) supporting above-average near-term growth, and its low-capex triple-net lease structure makes AFFO a clean, levered cash flow to discount directly; the model's output is close to the current sell-side average price target.