CBL & Associates Properties (CBL) has reshaped its balance sheet by refinancing a $634 million term loan through two new facilities, including $425 million in non recourse mall financing and a pending $176 million floating rate loan.

CBL’s refinancing and recent Gateway Mall acquisition sit against a mixed share price backdrop, with a 7.36% 1 month share price return but only a 1.90% year to date share price gain. At the same time, the 1 year total shareholder return of 45.62% points to stronger longer term investor gains.

If you want to see how other real estate names are reshaping their portfolios and balance sheets, this is a good moment to broaden your search with our 20 top founder-led companies

With CBL trading at US$37.63, showing an implied 17% intrinsic discount and sitting about 20% below the average analyst price target of US$45.00, investors may question whether there is meaningful upside remaining or whether the market has already priced in future growth.

Preferred P/E of 8.7x: Is it justified?

At a last close of $37.63, CBL & Associates Properties screens as undervalued on earnings, with a P/E of 8.7x compared with both its fair P/E and sector peers.

The P/E ratio compares the share price to earnings per share and is a common yardstick for real estate companies with positive earnings. For CBL, the current 8.7x multiple sits below the estimated fair P/E of 9.6x and far below both the US Retail REITs industry average of 27.4x and the wider peer average of 60.2x. This suggests the market is assigning a lower price tag to each dollar of CBL’s earnings than it does to comparable companies.

That discount comes despite earnings growth of 131.8% over the past year and a 5 year earnings growth rate of 61.9% per year, alongside higher net profit margins of 23.1% compared with 11.2% a year earlier. While reported earnings quality is affected by large one off items and a $104.7m gain in the last 12 months to 31 December 2025, the gap between CBL’s current P/E and both the fair P/E level and sector averages is wide and could narrow if the market moves closer to the levels suggested by the fair ratio work.

Result: Price to earnings of 8.7x (UNDERVALUED)

However, there are clear risks, including annual net income growth of 91.5% in the latest period, as well as recent 1 day and 7 day share price declines.

Another View: Cash Flows Tell a Similar Story

While the P/E work points to value, the SWS DCF model lands in a similar place, with an estimated future cash flow value of $45.45 against the current $37.63 share price. This implies CBL trades below that fair value estimate.

For you as an investor, that kind of gap can look like opportunity or risk, depending on whether you think the cash flow assumptions will hold up from here.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CBL & Associates Properties for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With both risks and rewards on the table, does the current picture feel balanced to you, or skewed one way? To pressure test your own view against the data and sentiment, take a closer look at the 3 key rewards and 3 important warning signs.

Looking for more investment ideas?

If CBL has sharpened your focus on value and quality, do not stop here. The next opportunity on your radar could come from a very different corner of the market.

• Target potential outperformance by scanning for companies that still look attractively priced using the 49 high quality undervalued stocks.
• Strengthen your income stream by reviewing companies that combine higher yields with staying power through the 15 dividend fortresses.
• Sleep easier at night by filtering for businesses with sturdier financial profiles via the 76 resilient stocks with low risk scores.

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.