
41.26 USD (+23.8%)
21 analysts
What does it do?
UDR, Inc. is a US real estate investment trust (REIT) that owns, operates, and develops rental apartments in high-density urban markets across the United States, generating revenue primarily from residential rents.
Key points
from its scores- ✓Favourable backdrop7.1
- ✕Little or no dividend4.5
- ✕Demanding valuation4.6
- !Weak share-price trend5.0
AI analysis
bottom line, main risk, context and newsThe combination of high leverage and sensitivity to interest rates limits the appeal, despite strong earnings growth and solid cash generation.
UDR shows moderate financial health (5.85) with high leverage (Net Debt/EBITDA of 5.76), average moat quality (5.74) with a high gross margin (66.58%) but low ROIC (3.82%), and exceptional earnings growth (90.90%) despite flat revenues. Valuation is stretched (EV/EBITDA of 16.95) and the dividend, with a payout of 109.18%, is not fully covered by earnings. The rising rate environment adds pressure on its cost of capital and refinancing.
The main risk is exposure to the interest rate cycle: with Net Debt/EBITDA of 5.76 and a payout of 109.18%, a sustained rise in long-term rates would make refinancing more expensive and could force a dividend cut.
Context and risks
UDR is a US residential REIT. The rise in long-term rates (10-year Treasury at 5.28%) increases the cost of its debt (Net Debt/EBITDA of 5.76) and pressures its long-duration asset valuation. Its position in the 4th percentile of the 52-week range already reflects part of this penalty, but refinancing risk and the impact on the cost of capital remain material for the sector.
Is UDR stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 78% above the Real Estate median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 21.1 | 21.6 | −2% |
| EV / EBITDA | 16.9 | 18.5 | −8% |
| Price / book | 3.7 | 1.4 | +159% |
| Price / sales | 7.0 | 6.3 | +11% |
Sector: median of the 100 Real Estate companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.6 out of 10 (median for Real Estate: 4.9).
Average analyst target: 41.26 USD, +23.8% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 5.7 (sector 5.2), Growth 6.5 (sector 5.7).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Real Estate medianValuation
- P/E
- 21.1
- Forward P/E
- 59.5
- EV / EBITDA
- 16.9
- Price / book
- 3.7
- Price / sales
- 7.0
- PEG
- 8.17
- Market cap
- 12.3B USD
- Enterprise value
- 17.6B USD
Profitability
- ROE
- 13.7%
- ROA
- 2.2%
- ROIC (approx.)
- 3.8%
- Gross margin
- 66.6%
- Operating margin
- 20.2%
- Net margin
- 29.6%
- Free cash flow
- 779.8M USD
- FCF yield
- 6.3%
- Cash conversion
- 75%
Solvency
- Total debt
- 6.0B USD
- Net debt
- 6.0B USD
- Cash
- 2.8M USD
- EBITDA
- 1.0B USD
- Net debt / EBITDA
- 5.76
- Debt / equity
- 156.14
- Current ratio
- 0.18
- Quick ratio
- 0.00
Growth
- Revenue growth
- −0.1%
- Earnings growth
- +90.9%
- EPS (TTM)
- 1.58 USD
- EPS (forward)
- 0.56 USD
Dividend
- Dividend yield
- 5.2%
- Payout
- 109.2%
Risk and market
- Beta
- 0.71
- Analyst consensus
- Buy (21)
- Target price
- 41.26 USD
- 52-week range
- 32.94 – 42.00
Recent news
All UDR news →Compare it with its sector
All 100 in Real Estate →Frequently asked questions about UDR
Is UDR stock cheap or expensive?
On P/E and Price / book, it trades 78% above the Real Estate median on average. Valuation score: 4.6 out of 10 (median for Real Estate: 4.9). Average analyst target: 41.26 USD, +23.8% versus the price. This is not investment advice.
What score does UDR get on MeridIAn Screener?
It scores 5.4 out of 10, rank 1,509 of 2,130 (better than 29% of the companies analysed). Its strongest category is Risk & Context (7.1) and its weakest, Dividend (4.5). Analysis of 08/10/2026.
What is UDR's P/E ratio?
Its P/E is 21.1: the share price equals 21.1 times earnings per share over the last 12 months. The Real Estate median is 21.6. Based on the earnings analysts expect, the forward P/E is 59.5.
How much is UDR worth on the stock market?
Its market capitalisation is 12.3B USD.
Does UDR pay a dividend?
Yes: its dividend yield is 5.22% and it pays out 109% of its earnings.
How has UDR stock performed over the last year?
It has fallen 3.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 32.94 and 42.00 USD. Past performance does not guarantee future results.
What do analysts think of UDR?
21 analysts cover it; their average recommendation is “Buy” and their average target is 41.26 USD (+23.8% versus the price). It is an estimate, not market data.
