One-glance verdict
Overvalued
$9.66 our estimate vs market $89.04
Wall Street consensus: $99.00 (925.1% higher than our fair-value estimate)
822% above our estimate, beyond the bull case
Fundamentals snapshot
Ventas, Inc.
VTR · NYQ · Real Estate · REIT - Healthcare Facilities
Current price
$89.04
52-week range
$73.82 - $101.60
Market cap
$47.09B
Balance sheet
Stretched
1.40x Concerning
Net debt $12.47B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 16.3% last year.
- Reward Free cash flow was positive in 6/10 years.
- Reward Dividend yield is 2.3% with 28-year payout history.
- Risk Net debt grew 0.9% over 3 years.
What this company does
Ventas, Inc.
Ventas, Inc. owns and operates a large number of senior housing communities and medical buildings in North America and the UK, essentially renting out spaces and services for older adults and healthcare providers. The main money comes from these rental agreements and the services provided, which is important because it shows how much people are willing to pay for these essential living and healthcare spaces. This creates a steady stream of income, often called recurring revenue (money that is expected to come in regularly over time), which helps the company plan and grow.
How the company got here
Ventas, Inc. was founded in 1998 and went public the same year, emerging as a real estate investment trust (REIT) focused on healthcare properties. Its early years were shaped by a significant challenge when a major tenant, Vencor, faced bankruptcy in 1999. Debra Cafaro, who became CEO in 1999, is credited with leading the company's turnaround and strategic repositioning. Over the years, Ventas has grown through acquisitions, expanding its portfolio beyond its initial focus to include senior housing, medical office buildings, and research facilities. The company has strategically reshaped its holdings over time, notably spinning off much of its skilled nursing portfolio in 2015 and increasing its exposure to research and innovation assets in 2018. Ventas is now a prominent S&P 500 company in the healthcare real estate sector.
What it actually does
Ventas, Inc. is a real estate investment trust (REIT) that owns, manages, and finances a diverse portfolio of healthcare-related properties. Think of it like a landlord, but instead of renting out apartments or offices, Ventas rents out spaces specifically designed for healthcare services and senior living. They own buildings like senior housing communities, medical office buildings, and research centers, and then lease these spaces to healthcare providers, research institutions, and senior living operators. Ventas aims to provide environments that support a growing aging population and the evolving needs of healthcare delivery.
Senior Housing Operating Portfolio (SHOP)
This segment is Ventas's largest, making up about half of its total net operating income (NOI). It involves Ventas owning and operating senior housing communities, which include independent living, assisted living, and memory care facilities. Instead of just collecting rent, Ventas actively participates in the results of these communities, often working with third-party managers. This means their success here is tied to how many residents they have (occupancy), how much they can charge for rent (rate growth), and how efficiently the communities are run (margin improvement). The demand for these services is driven by the aging population.
Outpatient Medical and Research Portfolio (OM&R)
This segment focuses on medical office buildings and research centers, contributing roughly a quarter of Ventas's net operating income. Ventas acquires, owns, develops, leases, and manages these types of properties. These facilities are often located near hospitals or health systems, making them convenient for patients and doctors. The tenants in these properties are typically healthcare providers and research institutions. This segment benefits from stable demand as healthcare services increasingly move to outpatient settings and as research and innovation in medicine grow.
Triple-Net Leased Properties (NNN)
This segment accounts for about a quarter of Ventas's net operating income and represents a more traditional landlord role. In this model, Ventas owns properties like senior housing communities, skilled nursing facilities, and rehabilitation centers, but the tenants are responsible for paying the property taxes, insurance, and maintenance costs. This provides Ventas with a more predictable and steady stream of rental income, as the operating expenses are largely covered by the tenants. The tenants are healthcare operators who lease these facilities from Ventas.
What management is betting on now
Ventas's management is strategically focused on optimizing its portfolio, with a strong emphasis on senior housing, particularly private-pay senior housing. They are actively investing in acquiring and developing senior housing communities, seeing significant growth potential driven by the aging population. The company is also prioritizing data-driven asset management to improve operational efficiency and tenant experience across its properties. Ventas aims to achieve growth through a combination of increasing occupancy and rental rates in its operating properties, alongside disciplined investments in high-quality medical and research facilities.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-1.99B
FY2025 Q4
$-2.46B
Revenue
$1.83B
Net income
—
Diluted EPS
0.13
Operating cash flow
$489.60M
Free cash flow
—
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Sources
Revenue
$1.73B
Net income
—
Diluted EPS
0.14
Operating cash flow
$556.55M
Free cash flow
—
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Sources
Revenue
$1.66B
Net income
—
Diluted EPS
0.11
Operating cash flow
$394.61M
Free cash flow
—
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Sources
Revenue
$1.57B
Net income
—
Diluted EPS
0.15
Operating cash flow
$471.66M
Free cash flow
$-2.46B
Fetching…
Sources
Revenue
$1.49B
Net income
—
Diluted EPS
0.14
Operating cash flow
$378.58M
Free cash flow
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Sources
Revenue
$1.42B
Net income
—
Diluted EPS
0.15
Operating cash flow
$475.34M
Free cash flow
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Sources
Revenue
$1.36B
Net income
—
Diluted EPS
0.10
Operating cash flow
$321.14M
Free cash flow
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Sources
Revenue
$1.29B
Net income
—
Diluted EPS
0.13
Operating cash flow
$373.64M
Free cash flow
$-1.99B
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Sources
Is it cheap or expensive?
Fair value $9.66 vs current price $89.04
Wall Street consensus is the average analyst price target: $99.00 (925.1% higher than our fair-value estimate).
Our most-likely fair value is $9.66 a share — about 89.2% below today's price of $89.04, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $12.5B. Interest coverage 1.4x.
Net debt
$12.47B
Interest coverage
1.40x
Ventas, Inc.'s profit covers its interest bill about 1.4 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
VTR
BASELINE
Ventas, Inc.
Total debt $12.67B Interest coverage 1.40x This is the baseline the peer rows are being compared against.
Total debt $21.19B Interest coverage 0.54x -61% vs VTR Carries about 2.6x less debt cushion than VTR.
Total debt $9.67B Interest coverage 1.78x +27% vs VTR Carries about 1.3x more debt cushion than VTR.
Total debt $4.02B Interest coverage 3.46x +147% vs VTR Carries about 2.5x more debt cushion than VTR.
Total debt $1.28B Interest coverage 3.53x +152% vs VTR Carries about 2.5x more debt cushion than VTR.
What you should know
The case for and against VTR
3 Rewards
1 Risk
Rewards
-
Revenue grew 16.3% last year.
-
Free cash flow was positive in 6/10 years.
-
Dividend yield is 2.3% with 28-year payout history.
Risks
-
Net debt grew 0.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
171.23x
Forward P/E
128.12x
P/B
2.98x
P/S
6.98x
EV/EBITDA
24.41x
PEG ratio
4.96x
Profitability
How much profit each dollar creates
Gross margin
39.3%
Operating margin
15.0%
Net margin
3.9%
ROE
1.9%
ROA
2.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.77x
Current ratio
0.37x
Quick ratio
0.30x
Total debt
$12.67B
Total cash
$202.01M
Growth
How the business has been compounding
Revenue TTM
$6.78B
Revenue 5Y CAGR
11.1%
EPS TTM
0.52
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.91B
Free CF TTM
$-1.28B
FCF margin
-18.9%
Dividend
Shareholder payout
Yield
2.3%
Payout ratio
392.3%
Last ex-div date
2026-09-30