Is Canadian Apartment Properties REIT (TSX:CAR.UN) Now Attractive After Recent Unit Price Weakness

Simply Wall St

Sun, February 15, 2026 at 5:11 PM GMT+9 5 min read

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Wondering whether Canadian Apartment Properties Real Estate Investment Trust is attractively priced at its current level, or if the market is missing something in its units.

The stock last closed at C$37.65, with returns of 1.4% year to date, a 5.7% decline over the past 30 days, and a 3.7% decline over the past year, which may have shifted how some investors see its risk and return profile.

Recent news around the trust has centred on its role in the Canadian residential rental market and how investors are weighing listed real estate exposure against other income focused options. This background helps frame why the 16.7% three year return and 10.5% five year return might be important context for where the units trade today.

Simply Wall St currently assigns Canadian Apartment Properties Real Estate Investment Trust a valuation score of 2 out of 6, based on checks of whether it looks undervalued on several common metrics. Next, we will walk through those methods before finishing with a different way to think about valuation altogether.

Canadian Apartment Properties Real Estate Investment Trust scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Canadian Apartment Properties Real Estate Investment Trust Discounted Cash Flow (DCF) Analysis

A DCF model takes estimates of future adjusted funds from operations, treats them like free cash flow to equity, and discounts those cash flows back to today to get an intrinsic value per unit.

For Canadian Apartment Properties Real Estate Investment Trust, the model uses last twelve month free cash flow of CA$406.39 million and a 2 Stage Free Cash Flow to Equity approach. Analysts provide explicit forecasts up to 2027, including CA$366.55 million in 2027, and Simply Wall St then extrapolates cash flows out to 2035. All of these projected cash flows are discounted back to today to arrive at a single present value figure.

On this basis, the estimated intrinsic value is CA$43.63 per unit, compared with the recent price of CA$37.65. That implies the units trade at a 13.7% discount to the DCF estimate, which indicates that, according to this cash flow model, the market price is below the calculated intrinsic value.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Canadian Apartment Properties Real Estate Investment Trust is undervalued by 13.7%. Track this in your watchlist or portfolio, or discover 5 more high quality undervalued stocks.

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CAR.UN Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Canadian Apartment Properties Real Estate Investment Trust.

Approach 2: Canadian Apartment Properties Real Estate Investment Trust Price vs Earnings

For a profitable business, the P/E ratio is a straightforward way to relate what you pay for each unit to the earnings it generates. Investors usually accept a higher or lower P/E depending on what they expect for future earnings growth and how much risk they see in those earnings, so there is no single “correct” P/E, only a range that looks reasonable for a given situation.

Canadian Apartment Properties Real Estate Investment Trust currently trades on a P/E of 29.71x. That compares with an average of 23.63x for the Residential REITs industry, and a peer group average of 23.76x. Simply Wall St also calculates a proprietary Fair Ratio of 16.88x for the trust, which is an estimate of what its P/E might look like given factors such as its earnings growth profile, profit margins, industry, market capitalization and company specific risks.

This Fair Ratio can be more informative than a simple peer or industry comparison because it adjusts for those company specific characteristics rather than assuming all Residential REITs deserve similar multiples. Set against the current P/E of 29.71x, the Fair Ratio of 16.88x suggests the units trade at a higher earnings multiple than this framework would indicate.

Result: OVERVALUED

TSX:CAR.UN P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Canadian Apartment Properties Real Estate Investment Trust Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your own story about a company that you connect to a set of numbers such as fair value, future revenue, earnings and margins. You can then compare that fair value to the current unit price on Simply Wall St’s Community page to help decide whether the price looks high or low for your view. The Narrative automatically updates as news or earnings arrive. For example, one Canadian Apartment Properties Real Estate Investment Trust investor might plug in a very optimistic view that lines up with a fair value around CA$71.76, while another might anchor on a more cautious CA$40.41. By seeing both side by side you can quickly decide which story and valuation feels closer to your own expectations.

Do you think there’s more to the story for Canadian Apartment Properties Real Estate Investment Trust? Head over to our Community to see what others are saying!

TSX:CAR.UN 1-Year Stock Price Chart

_ 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 CAR-UN.TO.

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

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