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HomeCo Daily Needs REIT (HDN) Fair Value & Analysis

Real Estate · AU · Market cap A$2.6B

HD HomeCo Daily Needs REIT HDN · AU
PriceA$1.29
Fair ValueA$1.34
Upside+3.9%
Quality62/100
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Healthy Growth
Highly profitable · 108.3% net margin
Moderate debt · generates free cash flow
6.83% dividend yield
Ranks above peers (13/14)
Moderate moat 49/100
Evidence: High Range A$1.12 – A$2.42 Share as image

Fair value as of: Jul 16, 2026

From 13 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from A$1.39 to A$1.34 (−3.6%) since Jun 26, 2026. Share price +2.0% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (A$1.12 to A$2.42) leaves room in how you read the outcome.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

A$1.34 A$0.8515 Fair Value A$1.34 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range A$0.8515 – A$1.34 · fair‑value band A$1.12 – A$2.42 · the A$1.29 price screens below the A$1.34 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

HomeCo Daily Needs REIT (HDN) currently trades at A$1.29, while our model-based Fair Value estimate is A$1.34, implying the stock looks roughly 3.9% fairly valued today. The Quality Score stands at 62/100 (solid quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Trailing-twelve-month revenue stands at A$348M. Revenue grew 10.1% year over year. It earns a return on equity of 12.1%. Net debt stands at A$1.7B. Fundamentals as of Jul 16, 2026

Our scenario range runs from A$1.12 (bear case) to A$2.42 (bull case); at A$1.29, 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 6% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -53% fair-value upside, at 4%, HDN 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF A$0.3200 A$1.41 A$3.36 80
Residual Income A$1.22 A$1.31 A$1.45 76
Rev-Margin DCF A$0.1500 A$1.03 A$2.30 74
All 13 models by family
DCF Models
FCF DCF A$0.3700 A$1.22 A$3.45 38
5Y Revenue Exit A$0.1500 A$0.9800 A$2.41 39
10Y Revenue Exit A$0.1800 A$1.12 A$2.40 36
Dividend Discount
Gordon GGM A$0.7100 A$1.41 A$2.14 70
DDM Multi-Stage A$0.7100 A$1.22 A$1.49 61
Multiples
P/S Multiple A$0.8500 A$1.13 A$1.42 58
P/B Multiple A$1.53 A$2.04 A$2.55 55
EV/EBIT A$1.12 A$1.77 A$2.42 53
EV/Revenue A$0.0200 A$0.3900 A$0.7600 43
Asset-Based
NCAV (Graham) A$0.7400 A$0.9900 A$1.47 50
Growth DCF
Growth DCF A$0.3200 A$1.41 A$3.36 80
Rev-Margin DCF A$0.1500 A$1.03 A$2.30 74
Economic Profit
Residual Income A$1.22 A$1.31 A$1.45 76

Widest divergence: Economic Profit (A$1.31) versus Asset-Based (A$0.9900). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$348M
Revenue growth (YoY) +10.1%
Net margin 108%
Return on equity 12.1%
Free cash flow A$175M FY2025
P/E ratio 7.0
More key figures
Operating margin 70.0%
EPS (TTM) A$0.1800
Dividend yield 6.8%
EPS growth (YoY) +108%
Net debt A$1.7B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 61 · Market factors (momentum, volatility) 62

Profitability 38
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 78
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 59
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

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

HomeCo Daily Needs REIT is an Australian Real Estate Investment Trust listed on the ASX with a mandate to invest in convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services. HomeCo Daily Needs REIT aims to provide unitholders with consistent and growing distributions.

Full company description

HomeCo Daily Needs REIT is an Australian Real Estate Investment Trust listed on the ASX with a mandate to invest in convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services. HomeCo Daily Needs REIT aims to provide unitholders with consistent and growing distributions. HomeCo Daily Needs REIT(ASX:HDN) operates independently of Home Consortium Limited as of December 31, 2020.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HomeCo Daily Needs REIT reported revenue of A$365M in FY2025 versus A$198M in FY2021, a compound +16.5%/yr. Reported net income was A$250M in FY2025, compounding −7.0%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
A$365M
Latest YoY
+0.0%
Avg. growth/yr (3Y)
+1.6%
Avg. growth/yr (5Y)
+51.8%
Revenue +16.5%/yr
FY21 A$198M
FY22 A$348M
FY23 A$355M
FY24 A$365M
FY25 A$365M
Net income −7.0%/yr
FY21 A$335M
FY22 A$102M
FY23 A$82.0M
FY24 A$250M
FY25 A$250M

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Cite: Fair Value Calculator (2026). "HomeCo Daily Needs REIT Fair Value". https://www.fairvalue-calculator.com/stock/HDN

Peer Group

REIT - Retail · 107 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.

Quality Score 64 · Top 25%
Fair Value upside +4% · Top 25%
Return on equity (TTM) 12% · Top 25%
Return on assets 3% · Below median
Net margin (TTM) 108% · Top 25%
Operating margin (TTM) 70% · Top 25%
Revenue growth 10% · Above median
Dividend yield (TTM) 6.8% · Top 25%
Debt / equity 0.57× · Lower than median

Valuation Multiples vs REIT - Retail median · lower = cheaper

P/E (TTM) 7.0× · Cheaper than 75% of peers
P/B 0.61× · Cheaper than 75% of peers
P/S (TTM) 5.34× · Cheaper than median
P/FCF 10.6× · Cheaper than median
EV/EBITDA 10.8× · Cheaper than 75% of peers

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 39 · sector 9
FUTURE 51 · sector 22
PAST 48 · sector 30
HEALTH 71 · sector 66
DIVIDEND 100 · sector 100

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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10 more REIT - Retail stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

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Frequently asked questions

Is HomeCo Daily Needs REIT (HDN) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of A$1.34 versus a price of A$1.29, about +4% (fairly valued).
What is the fair value of HDN?
Our model-based fair value for HomeCo Daily Needs REIT is A$1.34 (as of Jul 16, 2026), built from audited fundamentals. The current price is A$1.29.
What is the quality score of HDN?
HomeCo Daily Needs REIT has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of HomeCo Daily Needs REIT (HDN)?
HomeCo Daily Needs REIT reported trailing-twelve-month revenue of about A$348M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of HDN?
The net profit margin of HomeCo Daily Needs REIT is about 108.3%, meaning it keeps roughly 108.3% of revenue as net income. Based on the latest reported figures.
Does HomeCo Daily Needs REIT pay a dividend?
HomeCo Daily Needs REIT currently shows a dividend yield of about 7.11% relative to its recent price (as of Jul 16, 2026).

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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