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What Is Drawing Fresh Attention To CBL & Associates Properties (CBL)?

Simply Wall St · 1d ago

CBL & Associates Properties (CBL) just refinanced the US$135 million mortgage on its West County Center mall, extending the debt, fixing the interest rate, and freeing up cash that was previously restricted.

Recent trading has been choppy for CBL & Associates Properties, with the share price down 11.32% over the past week and 12.21% over 30 days. The stock still carries a 31.36% year to date share price gain and an 82.23% total shareholder return over the last year. This suggests momentum has cooled in the short term, even as longer term holders have seen strong results. The refinancing could help investors reassess the stock through the lens of balance sheet risk and cash generation.

Scan how CBL & Associates Properties compares on balance sheet strength by reviewing our hand-picked list of solid balance sheet and fundamentals (25 results) alongside this refinancing story.

Bulls point to CBL & Associates Properties clearing its last near term debt hurdle and unlocking extra cash, while bears focus on recent share price weakness and past earnings volatility. Which story does the current valuation support?

Price-to-Earnings of 7x: Is it justified?

The current P/E of 7x for CBL & Associates Properties sits well below both the broader US market and Retail REITs peers, even after a strong 1 year share price run. At a last close of $48.51, that gap raises a straightforward question for holders and onlookers. Is the market giving too little credit to the recent profit recovery, or does the discount reflect concern about how durable those earnings are?

The P/E ratio compares what investors pay today for each dollar of earnings. For a real estate investment trust that owns 85 properties and generates $588.1m of revenue with a 36.4% net margin, this lens helps you weigh current profitability against what the market is willing to pay for it.

On the face of it, CBL & Associates Properties trades at what looks like a low multiple. The stock changes hands at 7x earnings while the US market sits at 18x and the Retail REITs group averages 25.8x. The estimated fair P/E based on regression work is 7.4x. This sits only slightly above the current level and indicates a valuation that could move closer to that fair ratio if sentiment or earnings expectations shift.

Explore the SWS fair ratio for CBL & Associates Properties.

Result: Price-to-Earnings of 7x (UNDERVALUED)

Still, the sharp decline in annual net income growth and the recent 90 day share price pullback could quickly challenge the idea that CBL & Associates Properties is simply cheap.

Find out about the key risks to this CBL & Associates Properties narrative.

Another View on CBL & Associates Properties: DCF Says Overvalued

The low 7x P/E paints CBL & Associates Properties as cheap, yet the SWS DCF model points the other way. On that cash flow view, an estimated value of $43.18 sits below the current $48.51 share price, which frames the stock as overvalued rather than discounted.

That clash between earnings-based and cash flow-based signals puts you in the driver’s seat. Which lens feels more realistic for a leveraged mall owner with large one off items and forecast earnings declines, and which one are you willing to trust when sentiment shifts next?

Look into how the SWS DCF model arrives at its fair value.

CBL Discounted Cash Flow as at Oct 2026
CBL Discounted Cash Flow as at Oct 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CBL & Associates Properties for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 28 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals on CBL & Associates Properties so far, right. This is exactly why it pays to review the data yourself and decide how much weight to put on its 3 key rewards and 4 important warning signs.

Looking for more investment ideas beyond CBL & Associates Properties?

Do not stop with CBL & Associates Properties. Put fresh ideas on your radar by scanning different corners of the market that could suit your risk and income goals.

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.