NexPoint Residential Trust Inc
NYSE:NXRT
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EV/IC
Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.
Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.
Valuation Scenarios
If EV/IC returns to its 3-Year Average (1.2), the stock would be worth $29.22 (1% upside from current price).
| Scenario | EV/IC Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 1.2 | $28.92 |
0%
|
| 3-Year Average | 1.2 | $29.22 |
+1%
|
| 5-Year Average | 1.3 | $29.67 |
+3%
|
| Industry Average | 1.1 | $26.36 |
-9%
|
| Country Average | 1.5 | $35.13 |
+21%
|
Forward EV/IC
Today’s price vs future invested capital
Peer Comparison
| Market Cap | EV/IC | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
NexPoint Residential Trust Inc
NYSE:NXRT
|
733.5m USD | 1.2 | -22.9 | |
| US |
|
Avalonbay Communities Inc
NYSE:AVB
|
25.7B USD | 1.6 | 24.5 | |
| US |
|
Equity Residential
NYSE:EQR
|
24.6B USD | 1.6 | 22 | |
| US |
A
|
American Campus Communities Inc
F:FGA
|
17.8B EUR | 3.3 | 369.5 | |
| US |
|
Invitation Homes Inc
NYSE:INVH
|
17.4B USD | 1.4 | 29.7 | |
| US |
|
Essex Property Trust Inc
NYSE:ESS
|
17B USD | 1.8 | 25.3 | |
| US |
|
Sun Communities Inc
NYSE:SUI
|
15.6B USD | 1.7 | 11.5 | |
| US |
|
Mid-America Apartment Communities Inc
NYSE:MAA
|
15B USD | 1.7 | 33.9 | |
| US |
E
|
Equity LifeStyle Properties Inc
NYSE:ELS
|
12.2B USD | 2.8 | 31.5 | |
| US |
|
UDR Inc
NYSE:UDR
|
11.9B USD | 1.7 | 32 | |
| US |
|
American Homes 4 Rent
NYSE:AMH
|
11.7B USD | 1.3 | 26.8 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0.9 |
| Median | 1.5 |
| 70th Percentile | 2.9 |
| Max | 566 432.7 |
Other Multiples
NexPoint Residential Trust Inc
Glance View
NexPoint Residential Trust Inc., a prominent player in the real estate investment trust (REIT) sector, has carved out a distinctive niche by focusing primarily on acquiring, owning, and operating multifamily properties across the Southeastern and Southwestern United States. With a strategic emphasis on middle-market, workforce housing, NexPoint aims to capitalize on demographic trends that favor cost-effective living solutions in relatively affordable sunbelt states. By targeting urban and suburban markets with strong job growth, population increases, and favorable economic conditions, NexPoint positions itself wisely in a space where demand consistently outstrips supply. This focus has proven to be resilient against economic ebbs and flows, bolstered by a growing market need for rental housing at moderate price points, especially among young professionals and working-class families who seek quality residences within reach of major metropolitan areas. NexPoint's business model hinges on an integral approach to both capital and operational efficiency. By acquiring properties at competitive prices and enhancing their value through targeted renovations and amenity improvements, the company seeks to elevate its assets' attractiveness and, in turn, their rental income potential. This revitalization strategy not only boosts occupancy rates but also allows NexPoint to command higher rental premiums, driving steady revenue growth. Moreover, the company diligently manages its portfolio with a keen focus on operational cost control, ensuring that the increase in rental revenue efficiently trickles down to bolster the bottom line. Through strategic asset repositioning and adept financial management, NexPoint Residential Trust Inc. not only navigates the complexities of the real estate market but also endeavors to deliver sustained value to its stakeholders.