Is NNN REIT Still an Opportunity After Recent Portfolio Acquisitions in 2025?

• Curious if NNN REIT is still a bargain or if you're late to the party? You're not alone; investors are constantly parsing the numbers to figure out if the stock is trading below its true worth.
• The share price has made some interesting moves lately, dipping by 2.7% over the past week, 2.4% in the last month, but actually climbing 2.5% since the start of the year. Over five years, it is up by 58.3%, hinting at longer-term resilience despite some recent bumps.
• Much of the latest price action has come alongside headlines spotlighting the company's ongoing portfolio acquisitions and a steady demand for triple-net lease properties. These developments suggest that the market is responding to both the company’s expansion activity and broader trends in the commercial real estate sector.
• On valuation, NNN REIT scores a strong 5 out of 6 on our value checks, meaning it looks undervalued in almost every way we measure. Let’s break down which methods support this score, and stick around because at the end we will show you the simplest way to tell if it is truly a value opportunity.

Find out why NNN REIT's -5.5% return over the last year is lagging behind its peers.

Approach 1: NNN REIT Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) valuation estimates a company's intrinsic value by projecting its future cash flows, here based on adjusted funds from operations, and discounting them back to today's dollars using an appropriate rate. This approach helps investors look beyond current earnings to understand what a company may be worth if future cash generation unfolds as expected.

For NNN REIT, the latest twelve months' free cash flow stands at $616.6 Million. Analyst estimates project these figures to steadily grow, reaching $743.95 Million by 2028. Projections further out to 2035, though increasingly speculative, suggest continued annual growth in cash flows, with Simply Wall St extending the trends beyond the consensus analyst window.

Applying the DCF model using these numbers and the 2 Stage Free Cash Flow to Equity method, NNN REIT's intrinsic value is calculated at $73.35 per share. Compared to the current share price, this represents a substantial discount of 44.0 percent, indicating the stock is potentially trading well below what the underlying cash flows justify.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests NNN REIT is undervalued by 44.0%. Track this in your watchlist or portfolio, or discover 849 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for NNN REIT.

Approach 2: NNN REIT Price vs Earnings

The price-to-earnings (PE) ratio is a popular metric for valuing profitable companies because it connects the market’s expectations directly with a company’s demonstrated earning power. In other words, it shows how much investors are willing to pay for each dollar of earnings generated. For companies like NNN REIT, which consistently generate profits, the PE ratio serves as a straightforward yardstick for comparing value across peers and industries.

It is important to remember that what counts as a “normal” or fair PE ratio varies between sectors and individual companies, largely shaped by growth prospects and perceived levels of risk. Fast-growing companies typically command higher PE ratios, while companies facing uncertainty or slower growth tend to trade at lower ones.

NNN REIT currently trades at a PE ratio of 19.8x. This is below both the Retail REITs industry average of 26.4x and the peer group average of 30.7x. This indicates NNN REIT is priced more conservatively than many of its closest competitors. However, rather than simply comparing with peers, Simply Wall St identifies a tailored “Fair Ratio” for each company. This Fair Ratio accounts for factors like profit margins, growth outlook, market capitalization, and unique risks specific to NNN REIT. In this case, the Fair Ratio for NNN REIT is 31.9x. Compared to its current 19.8x, this suggests the share price is undervalued relative to what would be expected given its fundamentals.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1380 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your NNN REIT Narrative

Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is a simple yet powerful tool that allows you to craft your own story about a company by choosing the fair value and setting assumptions for future revenue, earnings, and profit margins. Instead of just looking at numbers in isolation, Narratives help you connect the company's business strengths and risks to a financial forecast, and then see how that influences its fair value.

Available right on the Simply Wall St Community page, used by millions of investors, Narratives make it easy to express your perspective and compare it with others. By setting your Narrative, you can clearly see whether NNN REIT looks undervalued or overvalued to you, making buy or sell decisions more transparent. Plus, since Narratives update automatically with new news or earnings releases, your view stays accurate as the story unfolds. For instance, one investor may believe NNN REIT's Sun Belt growth and strong tenant mix justify a fair value as high as $44.54, while a more cautious investor might see the risks and set their target closer to $38. Your Narrative puts your outlook at the center of your investing decisions.

Do you think there's more to the story for NNN REIT? Head over to our Community to see what others are saying!

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.

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