Will be interesting to see how their earnings are next Q1. I don't think one can come to the conclusion that this stock is overpriced by this metric alone. Clearly one needs to take into the account their consistency in growing FFO over the long haul as well as the effect the Sunrise Senior REIT acquisition will have on earnings going forward.
I thought vtr was overpriced at 30.00. Boy am I glad I stayed in the stock. I expect price will continue to climb as the company is paying only a modest part of their FFO out as a dividend. This means they are reinvesting in expanding the company
Classic example of why these guys know as much about stock valuation as my pet dog. They determine five stocks that are "overvalued" on the basis of P/E ratios and analyst-projected earnings growth.
Two of the companies they pick, Simon and Ventas, are REITs, which own real estate, and have very little non-rental income. Real estate companies are valued by looking at adjusted EBITDA divided by enterprise value, which is the market cap plus the debt. They are also evaluated on price per sf, market presence, duration of leases, and quality of holdings.
Looking at the P/E ration of a REIT is pointless. The idiots at Forbes should know this....
Thanks for your posting on the message board. I am glad I read the article and sold my shares just before it dropped. I also looked at another Healthcare REIT (HCN) I owned and realized that it's PEG was over 5. I also sold it just before the drop. Thanks again.
If you think the article accurately foretold a price drop, then how did those other stocks fare?
P.S. There's a difference between trading and investing. Selling before a $1.00 drop, and missing out on solid growth prospects for the future in a safe sector, with value predicated on class A real assets with low leverage, may have been a good trade, but it was a poor investment decision. Also, it likely had poor tax consequences. But hey, keep on getting investment advice from Forbes...