The Discounted Cash Flow (DCF) valuation of Sabra Health Care REIT Inc (SBRA) is 20.87 USD. With the latest stock price at 17.44 USD, the upside of Sabra Health Care REIT Inc based on DCF is 19.7%.
Based on the latest price of 17.44 USD and our DCF valuation, Sabra Health Care REIT Inc (SBRA) is a buy. Buying SBRA stocks now will result in a potential gain of 19.7%.
Range | Selected | |
WACC / Discount Rate | 5.3% - 7.6% | 6.5% |
Long-term Growth Rate | 2.0% - 4.0% | 3.0% |
Fair Price | 9.83 - 67.11 | 20.87 |
Upside | -43.6% - 284.8% | 19.7% |
(USD in millions) | Projections | |||||
12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | 12-2029 | |
Revenue | 703 | 748 | 774 | 805 | 853 | 892 |
% Growth | 9% | 6% | 4% | 4% | 6% | 5% |
Cost of goods sold | (210) | (223) | (231) | (240) | (255) | (266) |
% of Revenue | 30% | 30% | 30% | 30% | 30% | 30% |
Selling, G&A expenses | (49) | (53) | (55) | (57) | (60) | (63) |
% of Revenue | 7% | 7% | 7% | 7% | 7% | 7% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | (316) | (336) | (348) | (362) | (383) | (401) |
% of Revenue | 45% | 45% | 45% | 45% | 45% | 45% |
Tax expense | (1) | (2) | (2) | (2) | (3) | (3) |
Tax rate | 1% | 2% | 2% | 2% | 2% | 2% |
Net profit | 127 | 134 | 138 | 144 | 152 | 159 |
% Margin | 18% | 18% | 18% | 18% | 18% | 18% |