The Forward P/E Ratio is a great way to see what companies may potentially be undervalued or overvalued. The forward P/E Ratio gives a picture of what the investment community’s expectations are relative to future forecasted earnings. If earnings are expected to grow in the future, then the Forward P/E Ratio will be lower than the current P/E Ratio.
We ran a screen for real estate stocks that appear cheap with a low Forward P/E Ratio (X<10). From this narrowed pool we then screened for firms with a low-to-moderate Debt/Equity Ratio (X<.4)
The list is ranked from highest lowest by the Forward P/E Ratio.
1. Jones Lang LaSalle, Inc.(JLL)
Sector | Real Estate |
Industry | Real Estate Services |
Market Cap | $2,660M |
Beta | 1.88 |
The company is a real estate and investment management business. The firm's Forward P/E is 9.78. The firm's Debt/Equity Ratio is 0.27. The short interest is 1.00% as of 08/15/2011.
2. IRSA Investments and Representatives (IRS)
Sector | Real Estate |
Industry | Real Estate - General |
Market Cap | $644M |
Beta | 1.67 |
The Company has a variety of real estate operations in Argentina. The firm’s Forward P/E is 9.68. The firm’s Debt/Equity Ratio is 0.75. The short interest is N/A as of 08/15/2011.
3. HFF, Inc. (HF)
Sector | Real Estate |
Industry | Real Estate Services |
Market Cap | $381M |
Beta | 2.41 |
The Company provides commercial real estate and capital markets services in the US. The firm’s Forward P/E is 9.62. The firm’s Debt/Equity Ratio is 0.00. The short interest is 3.70% as of 08/15/2011.
4. Getty Realty Corporation (GTY)
Sector | Real Estate |
Industry | REIT - Retail |
Market Cap | $552M |
Beta | 0.78 |
The company is a Real Estate Investment Trust that owns and leases retail motor fuel convenience store properties along with petroleum distribution terminals. The firm’s Forward P/E is 8.22. The firm’s Debt/Equity Ratio is 0.43. The short interest is 10.80% as of 08/15/2011.
5. Annaly Capital Management, Inc (NLY)
Sector | Real Estate |
Industry | REIT - Diversified |
Market Cap | 17,492M |
Beta | 0.24 |
The Company owns and manages a portfolio of real estate derivative instruments. The firm’s Debt/Equity Ratio is 0.04. The short interest is 4.00% as of 08/15/2011.
6. Brookfield Office Properties (BPO)
Sector | Real Estate |
Industry | Real Estate Services |
Market Cap | $8,145M |
Beta | 1.97 |
The company owns and operates commercial properties In North America. The firm’s Forward P/E is 6.02. The firm’s Debt/Equity Ratio is 0.76. The short interest is N/A as of 08/15/2011.
We hope this list helps as investors do their own due diligence on real estate stocks that appear cheap.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
