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Assessing Douglas Emmett (DEI) Valuation After Recent Share Price Moves And Mixed Office REIT Signals

Simply Wall St · 3d ago

Why Douglas Emmett Is On Investors’ Radar Today

Douglas Emmett (DEI) has drawn attention after recent share price moves, with the stock closing at $11.22 and showing mixed returns over the past week, month and past 3 months.

See our latest analysis for Douglas Emmett.

The recent 1-day share price return of 2.77% decline comes after a weaker patch, with the 90-day share price return of 22.30% decline and 1-year total shareholder return of 29.94% decline pointing to fading momentum overall.

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With Douglas Emmett trading at $11.22 and data pointing to an estimated intrinsic discount of about 28%, the key question is whether this gap signals an undervalued REIT or if the market is already pricing in future growth.

Most Popular Narrative: 19.1% Undervalued

The most followed narrative puts Douglas Emmett’s fair value at about $13.86 versus the $11.22 last close, setting up a valuation gap built on detailed cash flow assumptions.

The analysts have a consensus price target of $17.773 for Douglas Emmett 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 $21.0, and the most bearish reporting a price target of just $13.0.

Read the complete narrative.

Curious what earnings path and margin shift sit behind that fair value and target range? The narrative leans heavily on modest revenue growth, a higher profit margin profile and a future earnings multiple that is usually reserved for stronger growth stories. Want to see how those moving parts fit together into today’s valuation gap?

Result: Fair Value of $13.86 (UNDERVALUED)

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

However, there are clear pressure points too, including lower office occupancy after key tenant departures and higher interest costs, which could keep earnings and FFO under strain.

Find out about the key risks to this Douglas Emmett narrative.

Another Angle On Valuation

There is a twist when you look at Douglas Emmett using earnings multiples instead of intrinsic value estimates. The shares trade on a P/E of 90.1x, while the fair ratio sits at 12.2x and the Global Office REITs average is 21.8x. On this basis, the stock appears expensive. With peers and the fair ratio that far below, investors may want to consider how confident they are that current earnings will bridge this gap over time.

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

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

Build Your Own Douglas Emmett Narrative

If you see the numbers differently or simply prefer to test your own assumptions, you can build a fresh narrative in just a few minutes. Start with Do it your way.

A great starting point for your Douglas Emmett research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Douglas Emmett has sharpened your focus, do not stop here. Broaden your opportunity set now so you are not relying on just one story.

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.