A Look At UDR (UDR) Valuation After Earnings Beat And Strong Same Store Growth

Simply Wall St

Thu, February 12, 2026 at 5:15 AM GMT+9 3 min read

In this article:

UDR

+1.04%

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.

UDR (UDR) just posted fourth quarter and full year 2025 results that topped its own guidance, with strong same store performance, ongoing lease rate strength, and fresh capital moves drawing investor attention.

See our latest analysis for UDR.

UDR’s recent earnings beat and guidance update have coincided with a 1-day share price return of 4.32% and a 7-day share price return of 7.51%. However, the 1-year total shareholder return shows a decline of 3.66%, which contrasts with a modest 0.40% gain over three years and suggests that short term momentum has picked up even as longer term results have been more muted.

If you are looking for more income focused real estate ideas beyond UDR, it could be worth checking our screener of 23 top founder-led companies as a fresh set of potential opportunities.

With earnings ahead of guidance, a share price still below many intrinsic value estimates, and only a small discount to analyst targets, the real question is whether UDR is still mispriced or if the market already anticipates the company’s future growth.

Most Popular Narrative: 2.5% Undervalued

UDR’s most followed narrative pegs fair value at about $40.38 per share, just above the last close of $39.38. This puts the current rally in tighter context.

Analysts have increased their fair value estimate for UDR to about $40.38 per share, reflecting recent price target revisions from several firms and updated views that incorporate slightly softer revenue growth, tighter profit margins, and a marginally higher future P/E.

Read the complete narrative.

Want to see what is driving that fair value upgrade? The narrative leans on measured rental growth, firmer margins, and a rich future earnings multiple. Curious how those pieces fit together in the model?

Result: Fair Value of $40.38 (UNDERVALUED)

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

However, that underpricing argument can weaken if elevated Sunbelt supply keeps rents soft or if new or tighter rent regulations squeeze margins in key coastal markets.

Find out about the key risks to this UDR narrative.

Another View: Rich P/E Raises Questions

That 2.5% implied undervaluation sits awkwardly next to UDR’s P/E of 34.7x, which is higher than both its fair ratio of 25.2x and the North American Residential REITs average of 26.4x and peer average of 28.5x. This raises the question of whether investors are looking at a valuation cushion or a margin of risk.

Story Continues  

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

NYSE:UDR P/E Ratio as at Feb 2026

Build Your Own UDR Narrative

If this narrative does not quite fit how you see UDR, or you prefer to work from the raw numbers yourself, you can build a custom view in just a few minutes. Start with Do it your way.

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

Looking for more investment ideas?

If UDR is already on your radar, this is a good time to widen your watchlist with other focused ideas that line up with your priorities and risk comfort.

Target value by reviewing companies that our screener flags as 51 high quality undervalued stocks that might warrant a closer look on your shortlist.

Strengthen your core holdings with businesses highlighted in our solid balance sheet and fundamentals stocks screener (45 results) so you can focus on fundamentals that matter to you.

Hunt for potential outliers using the screener containing 24 high quality undiscovered gems before they sit on everyone else’s radar instead of just yours.

_ 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._

Companies discussed in this article include UDR.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

Terms and Privacy Policy

Privacy Dashboard

More Info