The document discusses the valuation of Medical Properties Trust (MPW), highlighting its current trading position, dividend yield, and target price. MPW trades at a wider-than-historical discount compared to its peers due to operational risks in the acute care hospital space. The document suggests reasons for MPW to trade in line with historical valuations, including earnings upside from acquisitions and improvements in business scale. A target price of $17 per share is established, based on a 14.3x multiple of the 2017 AFFO estimate, with a 15% expected total return. The document also discusses the appropriateness of an earnings multiple-based approach over NAV for target pricing.
doj/DataSet10/EFTA01389040.pdf
{"title":"Valuation of Medical Properties Trust","document_date":"2016-07-22","document_type":"financial","key_organizations":["Medical Properties Trust","Deutsche Bank Securities Inc."],"reference_numbers":["DB-SDNY-0093204","SDNY_GM_00239388","EFTA01389040"]}