Starwood Real Estate Income Trust, Inc. (SWDR)

Market price: $12.35

4 valuation methods

How each method works

Price / FFO: $3.24 to $5.16 (midpoint $4.12)

Values a REIT at a peer multiple of funds from operations (FFO) — the real-estate cash-flow measure that adds back property depreciation, the sector-standard earnings proxy.

How it’s calculated
We compute funds from operations (FFO) — net income with the large non-cash property depreciation charge added back — per share, and apply the range of price-to-FFO multiples comparable REITs trade at.
Why it fits this industry
Accounting depreciation writes buildings down on a schedule even when the properties hold or gain value, so plain earnings understate a REIT's cash generation; FFO is the real-estate sector's standard earnings measure.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. Our FFO uses reported depreciation add-backs; any adjustments we could not make from the filings are noted on the bar.

Price / FFO = (9.27/11.79/14.76)× ffo_per_share 0.35 ≈ 3.24/4.12/5.16 (per_share)

P / B: $10.09 to $22.06 (midpoint $14.89)

Values the stock at a peer multiple of its book (net asset) value — most meaningful for asset-heavy and financial companies whose balance sheet drives value.

How it’s calculated
We take book value per share (total assets minus total liabilities, from the latest balance sheet, divided by shares outstanding) and multiply it by the range of price-to-book multiples the peer group trades at.
Why it fits this industry
Property companies are valued on what their assets are worth; price-to-book asks how the market prices the portfolio relative to its carrying value.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. Asset-light companies (brands, software) legitimately trade far above book value, so for them a P/B bar well below the price is usually structure, not signal.

P / B = (1.18/1.74/2.58)× book_value_per_share 8.56 ≈ 10.09/14.89/22.06 (per_share)

EV / Revenue: $9.30 to $25.47 (midpoint $17.83)

Values the whole business at a peer multiple of sales — used when earnings are thin, volatile, or not yet meaningful, so revenue is the most reliable yardstick.

How it’s calculated
We multiply the company's last-twelve-month revenue by the range of EV/Revenue multiples its peer group trades at, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding for a per-share range.
Why it fits this industry
When profits are thin, volatile, or still to come, revenue is the most dependable figure a company reports — this method values the business on the scale of what it actually sells.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A pound of revenue is worth more at a high margin than a low one, so the peer group here is narrowed to companies earning a similar margin wherever enough of them exist. Where too few do, the bar falls back to the wider group and is the bluntest of the multiples — weigh it alongside the earnings-based bars.

EV / Revenue = (10.09/12.19/14.07)× revenue 1,576,363,000 ≈ 15,904,928,458.94/19,215,991,065.12/22,186,641,881.38 (enterprise_value); enterprise_value -> per share: equity (3,612,826,458.94/6,923,889,065.12/9,894,539,881.38) / 388,413,005 shares [EV bridge: minus net debt 11,812,795,000, minus minority interest & preferred 479,307,000]

EV / EBITDA: $19.61 to $46.46 (midpoint $32.88)

Values the whole business at a peer multiple of its cash operating earnings (EBITDA) — the workhorse comparison for capital-intensive, profitable companies.

How it’s calculated
We take the company's cash operating earnings over the last twelve months (EBITDA — earnings before interest, taxes, depreciation and amortization) and multiply them by the range of EV/EBITDA multiples comparable companies currently trade at. That gives a value for the whole business (enterprise value); we then subtract net debt and anything owed ahead of common shareholders — minority interests in subsidiaries and preferred stock — and divide by shares outstanding to get a per-share range.
Why it fits this industry
REITs carry large, lumpy depreciation on buildings that often hold their value, so cash operating earnings (EBITDA) compare property businesses more fairly than accounting profit.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A company can also deserve a multiple above or below its peers — faster growth, stronger margins, or higher risk all justify honest gaps.

EV / EBITDA = (11.77/14.81/17.93)× ebitda 1,691,679,000 ≈ 19,908,658,043.94/25,061,653,759.48/30,336,981,936.33 (enterprise_value); enterprise_value -> per share: equity (7,616,556,043.94/12,769,551,759.48/18,044,879,936.33) / 388,413,005 shares [EV bridge: minus net debt 11,812,795,000, minus minority interest & preferred 479,307,000]

3 methods not shown