Diversified Healthcare Trust (DHC) Fair Value & Analysis
Real Estate · US · Market cap $2.1B
Diversified Healthcare Trust
DHC · US
Fair value as of: Jul 26, 2026
From 4 valuation models · updated 15 days ago
Share price −2.3% over the past month.
Below-average quality, and screening another 30% overvalued on our models.
What matters now
- Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
- The model range is unusually wide ($2.25 to $10.07). The outcome hinges heavily on assumptions, so read the point estimate with caution.
- The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
- As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 26, 2026.
How to read this chart
60‑month range $0.5890 – $9.64 · fair‑value band $2.25 – $10.07 · the $8.82 price screens above the $6.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 26, 2026.
Analysis
Diversified Healthcare Trust (DHC) currently trades at $8.82, while our model-based Fair Value estimate is $6.16, implying the stock looks roughly 30.2% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Real Estate sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).
Over the trailing twelve months, Diversified Healthcare Trust generated revenue of $1.5B at a net margin of -21.1%. Revenue declined 5.3% year over year. It earns a return on equity of -17.9%. Net debt stands at $2.3B. Fundamentals as of Jul 26, 2026
Our scenario range runs from $2.25 (bear case) to $10.07 (bull case); at $8.82, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 179% above its 52-week low, currently above its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -53% fair-value upside, at -30%, DHC screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 4 models by family
Widest divergence: Multiples ($6.23) versus Dividend Discount ($0.6000). Highest evidence: Gordon GGM (70).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 26, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 38 · Market factors (momentum, volatility) 71
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Diversified Healthcare Trust is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location.
Full company description
Diversified Healthcare Trust is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of March 31, 2026, DHC's approximately 6.2 billion dollars portfolio included 285 properties in 33 states and Washington, D.C., with 23,901 senior living units, approximately 5.6 million square feet of medical office and life science properties and occupied by approximately 250 tenants. DHC is managed by The RMR Group, a leading U.S. alternative asset management company with over 37 billion dollars in assets under management as of March 31, 2026 and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquarters in Newton, MA. Diversified Healthcare Trust was incorporated in 1998 in Maryland.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Diversified Healthcare Trust reported revenue of $1.5B in FY2025 versus $1.4B in FY2021, a compound +2.7%/yr. Reported net income was −$286M in FY2025.
DHC screens 30% overvalued. Compare with Welltower Inc →
Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Diversified Healthcare Trust Second Quarter 2026 Conference Call Scheduled for Tuesday, August 4th
- Diversified Healthcare (DHC) Surges 5.9%: Is This an Indication of Further Gains?
- Diversified Healthcare Trust raises 2026 guidance on expense management, SHOP portfolio
- Russell Microcap REIT reconstitution: SITC & AEI slated to join; DHC to exit
Peer Group
REIT - Healthcare Facilities · 28 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs REIT - Healthcare Facilities median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more REIT - Healthcare Facilities stocks, each showing price versus our Fair Value estimate (as of Jul 26, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Welltower Inc WELL | $231.59 | $42.21 | -82% |
| Ventas, Inc VTR | $100.53 | $18.07 | -82% |
| Omega Healthcare Investors, Inc OHI | $51.72 | $33.69 | -35% |
| Healthpeak Properties, Inc DOC | $22.27 | $7.02 | -68% |
| American Healthcare REIT, Inc AHR | $56.38 | $11.04 | -80% |
| CareTrust REIT, Inc CTRE | $43.25 | $23.07 | -47% |
| Healthcare Realty Trust Incorporated HR | $21.40 | $20.60 | -4% |
| Aedifica NV AED | €69.85 | €36.17 | -48% |
| Chartwell Retirement Residences CSHUN | C$22.81 | C$3.52 | -85% |
| Sabra Health Care REIT, Inc SBRA | $22.36 | $10.49 | -53% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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