2 models fit Douglas Emmett Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Bronze56
Valued as a REIT (property company): Price to FFO, Dividend discount, and EV/EBITDA comparison.
ACCE opinionDouglas Emmett Inc. Common Stock (DEI)
Fair value (2 models)
$15.38
ACCE price target
$9.40
Rating
Undervalued
Horizon
12 months
Fair value published on 21 Oct 2026, 11:06 CEST; previously $13.95 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 11:06 CEST.
Price used: $10.17 at the close on 23 Oct 2026, 22:00 CEST.
Models: Dividend discount and Price to FFO.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
33.9% below
+51.2% to fair value
ACCE score
47
out of 100
Analysts
8% buy
12 covering
P/E
0.0x
forward 9.0x
1-year return
-24.0%
Dividend yield
7.97%
Douglas Emmett Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Douglas Emmett owns and operates office and multifamily properties concentrated in Los Angeles and Honolulu, with its office portfolio sitting in the supply-constrained West LA and Santa Monica submarkets rather than in commodity suburban parks. The structural case rests on that footprint: scarce, well-located assets with a 63.2% gross margin and a 19.6% operating margin, but top-line growth of only 1.6% and a slightly negative ROE of -1.9% show the cash generation is not yet flowing through to equity holders. The near-term catalyst is lease-up and rent recovery in the office book as tenants return to high-quality space, which would show up first in revenue growth accelerating past its current pace. At a forward P/E of 9.0 the stock screens cheap on earnings expectations, but the score of 52/100 and the lack of index membership suggest the market is pricing in the risk of a weak office cycle and refinancing pressure on leverage. Worth a deeper look to test whether the West LA occupancy and rent trends justify the discount, and to check debt maturities against current rates.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Leverage and thin equity
Debt/Equity of 2.92 and ROE of -1.9% mean the equity cushion is thin. Net margin of -2.3% despite a 19.6% operating margin points to heavy interest costs.
high
Heavy short interest
Short interest sits at 28.3% of shares. That level of bearish positioning signals serious skepticism about the balance sheet and office demand.
moderate
Weak growth and quality scores
Revenue grew only 1.6% year on year and the 5-year revenue CAGR is 2.5%. Quality (46) and momentum (25) sub-scores are weak.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Consensus model fair value sits well above the share price, with the stock trading at a deep discount to the model fair value of $15.38.
Free cash flow over the last twelve months reached $194M, and the trailing free cash flow yield stands at 9.9%.
Revenue grew 1.6% year over year, and the 5-year average growth rate is 2.5% per year.
Why it could disappoint
The company reported a net margin of -2.3% and a return on equity of -1.9%, so it is not currently turning revenue into profit for shareholders.
Debt to equity of 2.92 leaves the balance sheet heavily geared, which is a concern for an office landlord facing tenant and rate pressure.
Only 1 of 12 analysts rates the stock Buy or Strong Buy, and the analysts' mean price target of $12.60 is well below the model fair value of $15.38.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where DEI's valuation models land
Price
$10.17
Model fair value
$15.38
Model range
$4.50 to $26.26
Fair value $15.38
Price $10.17
The price sits inside the model range.
Model
Fair value
Upside
Dividend discount
EV/EBITDA comparison
Price to FFO
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores