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Highwoods Properties (HIW) Valuation Check After Mixed Recent Share Price Performance

Simply Wall St · 5d ago

Highwoods Properties (HIW) has drawn investor attention after recent share price moves, with the stock showing mixed returns across different periods, including a negative past 3 months but growth over the past month.

See our latest analysis for Highwoods Properties.

At a share price of $26.61, Highwoods Properties has recently posted a 1 day share price return of 3.90% and a 7 day gain of 2.15%. Its 1 year total shareholder return shows a decline of 2.54%, which contrasts with an 18.45% gain over three years and suggests that shorter term momentum has softened compared with the longer term picture.

If recent moves in Highwoods have you reviewing your real estate exposure, this can be a good time to broaden your search with fast growing stocks with high insider ownership.

With Highwoods trading at $26.61 and indicators like intrinsic value estimates and analyst targets suggesting a possible discount, the key question is whether this REIT is genuinely undervalued or if the market already prices in its future growth potential.

Most Popular Narrative Narrative: 16.1% Undervalued

With Highwoods Properties last closing at $26.61 against a narrative fair value of $31.70, the current price sits well below that central estimate, which frames the rest of the valuation debate.

The analysts have a consensus price target of $30.75 for Highwoods Properties based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $34.0, and the most bearish reporting a price target of just $23.0.

Read the complete narrative.

Curious what justifies paying up for shrinking margins and earnings, yet still calling the shares undervalued? Revenue growth, margin compression and a rich future earnings multiple all sit at the core of this fair value story. Want to see how those moving parts add up to that price tag?

Result: Fair Value of $31.70 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there is still a real chance that stronger leasing, tighter Sunbelt office supply, or more profitable asset recycling could challenge this undervalued narrative.

Find out about the key risks to this Highwoods Properties narrative.

Another View: What The P/E Ratio Is Saying

While the narrative model points to a 16.1% undervaluation, the current P/E of 23.4x tells a more cautious story. It is slightly higher than the global office REITs average of 21.8x, but below peers at 40.2x and close to a fair ratio of 25.4x. That mix can point to limited mispricing in either direction, so it is worth considering how much conviction to place on the growth assumptions behind that discount.

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:HIW P/E Ratio as at Jan 2026
NYSE:HIW P/E Ratio as at Jan 2026

Build Your Own Highwoods Properties Narrative

If you are not sold on this view or prefer to weigh the numbers yourself, you can shape your own narrative in just a few minutes. Start with Do it your way.

A great starting point for your Highwoods Properties research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Highwoods has sharpened your interest, do not stop here. Broadening your watchlist with fresh ideas can help you spot opportunities others might miss.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.