Sabra Healthcare REIT Inc (SBRA) is overvalued and Welltower Inc (WELL) is overvalued.
Both trade above our estimate of their intrinsic value. WELL is the closer of the two: -215%, against -607% for SBRA.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $2.80; the price of $19.81 is 607% above that value, and 81% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
Discounting its cash flows at 8.7% (average of 2 methods) values the shares at $73.15; the price of $230.39 is 215% above that value, and 78% of that value comes from beyond year five.
Leak Score 49/100 on 8 of 12 signals
| Metric | SBRA | WELL |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $19.81 | $230.39 |
| Intrinsic value | $2.80 | $73.15 |
| Margin of safety | -607% | -215% |
| Leak Score | 0/100 (2/12) | 49/100 (8/12) |
| Market cap | $5.1B | $166.1B |
| Revenue growth, 5 years | 5.5% | 18.7% |
| Operating margin | 18.8% | 5.3% |
| Net margin | 7.6% | -2.8% |
| Return on equity | 2.4% | 3.8% |
| Debt to equity | 0.96 | 0.42 |
| P/E | 76.2x | — |
| Forward P/E | 25.9x | 70.9x |
| P/B | 1.8x | 3.6x |
| Dividend yield | 6.1% | 1.4% |