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What Is Dream Industrial Real Estate Investment Trust's (TSE:DIR.UN) Share Price Doing?

Simply Wall St

Dream Industrial Real Estate Investment Trust (TSE:DIR.UN), which is in the reits business, and is based in Canada, saw its share price hover around a small range of CA$12.86 to CA$14.03 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Dream Industrial Real Estate Investment Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Dream Industrial Real Estate Investment Trust

What is Dream Industrial Real Estate Investment Trust worth?

Good news, investors! Dream Industrial Real Estate Investment Trust is still a bargain right now. My valuation model shows that the intrinsic value for the stock is CA$21.09, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Dream Industrial Real Estate Investment Trust’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Can we expect growth from Dream Industrial Real Estate Investment Trust?

TSX:DIR.UN Past and Future Earnings, January 21st 2020

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With revenues expected to grow by a double-digit 25% over the next couple of years, the outlook is positive for Dream Industrial Real Estate Investment Trust. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since DIR.UN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on DIR.UN for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DIR.UN. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Dream Industrial Real Estate Investment Trust. You can find everything you need to know about Dream Industrial Real Estate Investment Trust in the latest infographic research report. If you are no longer interested in Dream Industrial Real Estate Investment Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.