Diversified Healthcare Trust stock: fair value
DHCThe fair value of Diversified Healthcare Trust under our model is $2.01, the price is 263% above.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly overvaluedIn our model the price counts as cheap below $1.44 and expensive above $3.35 (uncertainty high, one part of the fair value is more than twice the other).
The two parts of the fair value come to $0.83 (cash-flow model) and $3.19 (industry comparison), and the gap between them shows how uncertain the estimate is. The price is above both.
Calculated with a cost of equity of 8.8%. At 9.8% the fair value would be $1.94, at 7.8% it would be $2.12.
Where the number comes from
Half from the dividend model, half from operating cash flow per share times the median price to cash flow of the REIT industry (14.2). For the fair value, FFO only counts when it is in line with operating cash flow. That is not the case here, for example because the REIT carries its properties at market value, records little depreciation or a gain on sale sits in earnings.
Dividend model: the dividend grows by 3.8% a year for good and is discounted at 8.8% (floor: government bond yield 3.8% plus 5 percentage points, since beta 0.8 times the risk premium would give less).
Calculate with your own assumptionsThe calculation step by step
With these figures the dividend model arrives at $0.83 per share: next year's dividend divided by the gap between the discount rate and growth. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Step | Value |
|---|---|
| Dividend per share | $0.04 |
| Next dividend: × (1 + 3.8%) | $0.04 |
| Value per share: next dividend / (8.8% − 3.8%) | $0.83 |
| Operating cash flow per share | $0.22 |
| × 14.2 (price/cash flow of the REIT industry) | $3.19 |
| Fair value (average of both parts) | $2.01 |
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Dec 2025
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Weak, published since 7 Nov 2026 (in the score history since 30 Nov 2019)
- Valuation signal Overvalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.