The Necessity Retail REIT, Inc.

NasdaqGS:RTL Stock Report

Market Cap: US$1.0b

Necessity Retail REIT Valuation

Is RTL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RTL ($7.61) is trading below our estimate of fair value ($11.02)

Significantly Below Fair Value: RTL is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RTL?

Other financial metrics that can be useful for relative valuation.

RTL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8x
Enterprise Value/EBITDA14.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does RTL's PS Ratio compare to its peers?

The above table shows the PS ratio for RTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.7x
CMRF CIM Real Estate Finance Trust
3xn/aUS$1.6b
ALX Alexander's
5x-2.6%US$1.2b
RPT RPT Realty
5.2x3.7%US$1.1b
SITC SITE Centers
1.7x-16.4%US$896.4m
RTL Necessity Retail REIT
2.2x0.6%US$1.0b

Price-To-Sales vs Peers: RTL is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (4.7x).


Price to Earnings Ratio vs Industry

How does RTL's PE Ratio compare vs other companies in the US Retail REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.1%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.1%
n/an/an/a
No more companies

Price-To-Sales vs Industry: RTL is good value based on its Price-To-Sales Ratio (2.2x) compared to the US Retail REITs industry average (5.5x).


Price to Sales Ratio vs Fair Ratio

What is RTL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RTL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.2x
Fair PS Ratio2.6x

Price-To-Sales vs Fair Ratio: RTL is good value based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RTL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Oct ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Sep ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Aug ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Jul ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Jun ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
May ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Apr ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Mar ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Feb ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Jan ’25n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Dec ’24n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Nov ’24n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Oct ’24n/a
US$10.50
0%
4.8%US$11.00US$10.00n/a2
Sep ’24US$6.81
US$10.50
+54.2%
4.8%US$11.00US$10.00n/a2
Aug ’24US$7.05
US$9.50
+34.8%
15.8%US$11.00US$8.00n/a2
Jul ’24US$6.76
US$9.50
+40.5%
15.8%US$11.00US$8.00n/a2
Jun ’24US$6.29
US$9.50
+51.0%
15.8%US$11.00US$8.00n/a2
May ’24US$5.49
US$10.50
+91.3%
4.8%US$11.00US$10.00n/a2
Apr ’24US$6.28
US$10.50
+67.2%
4.8%US$11.00US$10.00n/a2
Mar ’24US$6.88
US$10.50
+52.6%
4.8%US$11.00US$10.00n/a2
Feb ’24US$6.87
US$10.50
+52.8%
4.8%US$11.00US$10.00n/a2
Jan ’24US$5.93
US$10.50
+77.1%
4.8%US$11.00US$10.00n/a2
Dec ’23US$6.75
US$10.50
+55.6%
4.8%US$11.00US$10.00n/a2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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