Alexandria Real Estate Equities, Inc. (ARE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+485.0%

$241.65

vs $41.31 price

Levered DCF

$167.17

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.14

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-5.8×	54.19×	234.76×	45.81×	58.21×	38×	100.99×	22.96×
P/B	0.54×	0.94×	1.17×	1.24×	2.02×	1.92×	2.04×	1.62×
P/S	2.81×	5.5×	7.62×	9.14×	15.54×	11.87×	11.95×	8.94×
EV / EBITDA	57.02×	15.26×	22.6×	18.84×	25.73×	25.42×	22.27×	16.49×
Gross margin	68.9%	70.2%	69.8%	69.6%	70.4%	72.0%	70.6%	71.3%
Operating margin	-40.5%	25.2%	24.3%	23.8%	24.3%	65.0%	27.6%	31.8%
Net margin	-48.2%	10.6%	3.6%	20.3%	27.1%	40.7%	23.9%	39.0%
Current ratio	0.43×	0.4×	0.39×	0.58×	0.41×	0.64×	0.27×	0.33×
Debt / equity	0.82×	0.71×	0.63×	0.56×	0.57×	0.67×	0.8×	0.75×
Interest coverage	-5.3×	4.14×	9.3×	6.51×	3.6×	7.17×	2.41×	2.68×
Dividend yield	10.9%	5.4%	3.9%	3.2%	2.0%	2.4%	2.5%	3.3%
Payout ratio	-63.7%	278.2%	817.7%	145.3%	114.8%	69.1%	124.2%	74.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-9.2%	1.8%	0.6%	2.7%	3.5%	6.6%	4.1%	7.0%
Return on invested capital	-3.7%	2.2%	2.0%	1.8%	1.8%	5.6%	2.4%	3.1%
Return on assets	-4.2%	0.9%	0.3%	1.5%	1.9%	3.4%	2.0%	3.6%
Free cash flow yield	17.0%	9.0%	7.5%	5.5%	-19.3%	3.9%	3.8%	-11.6%
Earnings yield	-17.2%	1.9%	0.5%	2.2%	1.7%	3.4%	2.0%	4.4%
Enterprise value	$20.6B	$29B	$32.7B	$33.3B	$41.6B	$29.8B	$25B	$17.1B
Net debt / EBITDA	33.88×	6.42×	7.65×	5.51×	5.48×	6.26×	6.11×	5.05×
Cash conversion cycle (days)	-162	-195	-215	-172	-285	-187	-151	-193