Assessing Apple Hospitality REIT (APLE) valuation after a weak year-to-date share performance

Apple Hospitality REIT (APLE) has quietly drifted lower this year, but that weakness is starting to intrigue income-focused investors. With shares still under pressure, the conversation shifts to whether the current yield compensates for the risks.

See our latest analysis for Apple Hospitality REIT.

Despite a modest 1 month share price return of 3.49% from the recent low, the share price is still down sharply on a year to date basis. However, the 5 year total shareholder return of 18.05% shows that the longer term income plus dividend story has been steadier than the recent price weakness suggests.

If Apple Hospitality has you rethinking where you look for income and stability, it could be worth exploring fast growing stocks with high insider ownership as a way to spot other under the radar opportunities.

With shares trading below intrinsic value but offering only modest growth, the key question for investors now is whether Apple Hospitality is genuinely undervalued or if the current price already reflects its future recovery potential.

Most Popular Narrative: 6.5% Undervalued

With Apple Hospitality REIT last closing at $12.16 versus a narrative fair value of $13.00, followers see a small but notable discount emerging.

The analysts have a consensus price target of $13.6 for Apple Hospitality REIT 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 $15.0, and the most bearish reporting a price target of just $12.0.

Read the complete narrative.

Curious how modest revenue growth, easing margin expectations and a higher future earnings multiple still point to upside? The narrative walks through that puzzle step by step.

Result: Fair Value of $13.00 (UNDERVALUED)

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

However, disruption from alternative lodging platforms and prolonged weakness in business travel demand could upend these expectations if occupancy and rates lag projections.

Find out about the key risks to this Apple Hospitality REIT narrative.

Build Your Own Apple Hospitality REIT Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your Apple Hospitality REIT research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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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.

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