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At US$14.53, Is It Time To Put Brandywine Realty Trust (NYSE:BDN) On Your Watch List?

Simply Wall St

Brandywine Realty Trust (NYSE:BDN), which is in the reits business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $15.74 at one point, and dropping to the lows of $14.09. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Brandywine Realty Trust's current trading price of $14.53 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Brandywine Realty 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 Brandywine Realty Trust

Is Brandywine Realty Trust still cheap?

Great news for investors – Brandywine Realty Trust is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $26.12, but it is currently trading at US$14.53 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Brandywine Realty 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.

What does the future of Brandywine Realty Trust look like?

NYSE:BDN Past and Future Earnings, September 9th 2019

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Brandywine Realty Trust, at least in the near future.

What this means for you:

Are you a shareholder? Although BDN is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to BDN, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on BDN for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

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

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.

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. Thank you for reading.