CTP (ENXTAM:CTPNV) has shown interesting movement for investors recently, especially when looking at its returns over the past year. The company’s shares are up 27% over the last twelve months, which is ahead of broader market trends.
See our latest analysis for CTP.
CTP’s 1-year total shareholder return of 27% reflects not only solid share price gains, but also signals renewed investor confidence in the company’s growth profile. While the past month brought a slight pullback in the share price, momentum for the year to date remains strong, suggesting market optimism has not faded.
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But with shares up markedly in the past year, is the current price still attractive for new investors? Or is all of CTP’s anticipated growth already reflected in its valuation, leaving little room for upside?
CTP is trading at a price-to-earnings (P/E) multiple of 7.2x, which is notably lower than both the sector and peer group averages. The company’s last close price, €18.02, suggests the market may be undervaluing its earnings power relative to competitors in the European real estate sector.
The P/E ratio is a popular valuation tool, measuring how much investors are paying for a company’s net profit per share. For real estate businesses, this metric helps gauge expectations for future profit growth, stability, and sector risks.
At 7.2x, CTP’s P/E is well below the peer average of 19.8x and the wider European real estate industry average of 14.6x. This may indicate that the market is assigning a discount despite the company’s above-market earnings growth. If investor sentiment shifts in line with the sector, there could be significant upside as the multiple normalizes.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 7.2x (UNDERVALUED)
However, slower annual net income growth and recent share price volatility could temper optimism and indicate the need for caution going forward.
Find out about the key risks to this CTP narrative.
While the price-to-earnings ratio points to undervaluation, our DCF model provides another perspective. Based on projected future cash flows, CTP’s fair value is estimated at €24.11 per share, which is 25.2% above the current market price. Can this deeper value signal remain valid as conditions change?
Look into how the SWS DCF model arrives at its fair value.