Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Real Estate Management & Development industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Real Estate Management & Development Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Real Estate Management & Development Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Real Estate Management & Development industry for Monday, November 11, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Real Estate Management & Development industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

KE Holdings Inc.’s Value Grade

Value Grade:

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

KE Holdings Inc. has a Value Score of 73, which is considered to be undervalued.

When you look at KE Holdings Inc.’s price-to-sales ratio at 0.31 compared to the industry median at 2.12, this company has a lower price relative to revenue compared to its peers. This could make KE Holdings Inc.’s stock more attractive for value investors.

KE Holdings Inc.’s price-earnings ratio is 43.30 compared to the industry median at 43.55. This means it has a lower share price relative to earnings compared to its peers. This could make KE Holdings Inc. more attractive for value investors.

Now, let’s assess KE Holdings Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 18.9, when compared to the industry median of 19.2, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. KE Holdings Inc.’s shareholder yield is higher than its industry median ratio of 0.00%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. KE Holdings Inc.’s price-to-book ratio is lower than its industry median ratio of 1.35. This could make KE Holdings Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at KE Holdings Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. KE Holdings Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 30.10. This could make KE Holdings Inc. more attractive because the lower P/FCF ratio indicates that KE Holdings Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Douglas Elliman Inc.’s Value Grade

Value Grade:

Douglas Elliman Inc. engages in the real estate services and property technology investment business in the United States. It operates in two segments, Real Estate Brokerage, and Corporate and Other. The company provides residential real estate brokerage services. It has approximately 125 offices with approximately 6,600 real estate agents in the New York metropolitan areas, as well as in Florida, California, Connecticut, Massachusetts, Colorado, New Jersey, and Texas. Douglas Elliman Inc. was founded in 1911 and is headquartered in Miami, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Douglas Elliman Inc. has a Value Score of 90, which is considered to be undervalued.

Douglas Elliman Inc.’s price-to-book ratio is higher than its peers. This could make Douglas Elliman Inc. less attractive for value investors when compared to the industry median at 1.35.

You can read more about Douglas Elliman Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Forestar Group Inc.’s Value Grade

Value Grade:

Forestar Group Inc. operates as a residential lot development company in the United States. The company acquires land and develops infrastructure for single-family residential communities. It sells its residential single-family finished lots to local, regional, and national homebuilders. The company was incorporated in 2005 and is headquartered in Arlington, Texas. Forestar Group Inc. operates as a subsidiary of D.R. Horton, Inc.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Forestar Group Inc. has a Value Score of 82, which is considered to be undervalued.

Forestar Group Inc.’s price-earnings ratio is 7.8 compared to the industry median at 43.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Forestar Group Inc. more attractive for value investors.

Forestar Group Inc.’s price-to-book ratio is higher than its peers. This could make Forestar Group Inc. less attractive for value investors when compared to the industry median at 1.35.

You can read more about Forestar Group Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Anywhere Real Estate Inc.’s Value Grade

Value Grade:

Anywhere Real Estate Inc., through its subsidiaries, provides residential real estate services in the United States and internationally. The company operates through three segments: Anywhere Brands, Anywhere Advisors, and Anywhere Integrated Services. The Anywhere Brands segment franchises the Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, Coldwell Banker Commercial, Corcoran, ERA, and Sotheby's International Realty brand names. This segment also includes global relocation services under Cartus brand name; and lead generation activities. The Anywhere Advisors segment operates a full-service residential real estate brokerage business under the Coldwell Banker, Corcoran, and Sotheby’s International Realty brand names to assist home buyers and sellers in the listing, marketing, selling, and finding homes. This segment also operates real estate auction joint venture. The Anywhere Integrated Services segment provides full-service title, escrow, and settlement services to consumers, real estate companies, corporations, and financial institutions primarily in support of residential real estate transactions. This segment also originates and markets its mortgage lending services to other real estate brokerage companies. The company was formerly known as Realogy Holdings Corp. and changed its name to Anywhere Real Estate Inc. in June 2022. Anywhere Real Estate Inc. was incorporated in 2006 and is headquartered in Madison, New Jersey.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Anywhere Real Estate Inc. has a Value Score of 74, which is considered to be undervalued.

Anywhere Real Estate Inc.’s price-to-book ratio is higher than its peers. This could make Anywhere Real Estate Inc. less attractive for value investors when compared to the industry median at 1.35.

You can read more about Anywhere Real Estate Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Merchants' National Properties, Inc.’s Value Grade

Value Grade:

Merchants' National Properties, Inc. owns, manages, develops, and leases various commercial real estate properties in the United States. Its asset portfolio includes shopping centers, office buildings, and other commercial real estate properties. The company also invests in various real estate ventures. It holds interests in 67 properties across 17 states in the United States. The company was founded in 1815 and is headquartered in New York, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Merchants' National Properties, Inc. has a Value Score of 65, which is considered to be undervalued.

Merchants' National Properties, Inc.’s price-earnings ratio is 13.5 compared to the industry median at 43.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Merchants' National Properties, Inc. more attractive for value investors.

Merchants' National Properties, Inc.’s price-to-book ratio is higher than its peers. This could make Merchants' National Properties, Inc. less attractive for value investors when compared to the industry median at 1.35.

You can read more about Merchants' National Properties, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

RE/MAX Holdings, Inc.’s Value Grade

Value Grade:

RE/MAX Holdings, Inc. operates as a franchisor of real estate brokerage services in the United States, Canada, and internationally. It operates through Real Estate, Mortgage, and Marketing Funds segments. The company offers real estate brokerage franchising services under the RE/MAX brand; mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand; and mortgage loan processing software and services under the wemlo brand. It also provides kvCORE platform, which integrates a suite of digital products that enables agents, brokers, and teams to establish and manage client relationships; and RE/MAX University platform, a learning hub designed to help each agent in their professional expertise. The company was founded in 1973 and is headquartered in Denver, Colorado.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

RE/MAX Holdings, Inc. has a Value Score of 86, which is considered to be undervalued.

You can read more about RE/MAX Holdings, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Real Estate Management & Development Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Real Estate Management & Development stocks as well as other industrys.

Choosing Which of the 6 Best Real Estate Management & Development Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• KE Holdings Inc. stock has a Value Grade of B.
• Douglas Elliman Inc. stock has a Value Grade of A.
• Forestar Group Inc. stock has a Value Grade of A.
• Anywhere Real Estate Inc. stock has a Value Grade of B.
• Merchants' National Properties, Inc. stock has a Value Grade of B.
• RE/MAX Holdings, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 undervalued stocks in the Real Estate Management & Development industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Real Estate Management & Development Stocks

Want to learn more about Real Estate Management & Development stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Real Estate Management & Development Stocks for Monday, November 11
• 5 Undervalued Real Estate Management & Development Stocks for Friday, November 08
• 4 Undervalued Real Estate Management & Development Stocks for Thursday, November 07
• 3 Undervalued Real Estate Management & Development Stocks for Monday, November 04

AAII Disclaimer

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