Realty Income Corporation

NYSE:O Stock Report

Market Cap: US$46.2b

Realty Income Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: O ($52.66) is trading below our estimate of fair value ($95.63)

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

Key Valuation Metric

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

Key metric: As O is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for O. This is calculated by dividing O's market cap by their current earnings.
What is O's PE Ratio?
PE Ratio53.2x
EarningsUS$866.69m
Market CapUS$46.23b

Price to Earnings Ratio vs Peers

How does O's PE Ratio compare to its peers?

The above table shows the PE ratio for O vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.4x
SPG Simon Property Group
22.9x-0.3%US$64.6b
KIM Kimco Realty
44.5x13.4%US$15.8b
REG Regency Centers
34.3x4.1%US$13.5b
ADC Agree Realty
39.9x10.3%US$7.3b
O Realty Income
53.2x18.9%US$46.2b

Price-To-Earnings vs Peers: O is expensive based on its Price-To-Earnings Ratio (53.2x) compared to the peer average (35.4x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SITC SITE Centers
1.1x-118.9%US$786.98m
RVIC Retail Value
0.2xn/aUS$5.72m
No more companies available in this PE range
O 53.2xIndustry Avg. 34.0xNo. of Companies4PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: O is expensive based on its Price-To-Earnings Ratio (53.2x) compared to the US Retail REITs industry average (34x).

Price to Earnings Ratio vs Fair Ratio

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

O PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53.2x
Fair PE Ratio45.1x

Price-To-Earnings vs Fair Ratio: O is expensive based on its Price-To-Earnings Ratio (53.2x) compared to the estimated Fair Price-To-Earnings Ratio (45.1x).

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 O forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$52.66
US$63.83
+21.2%
6.6%US$75.00US$59.00n/a20
Dec ’25US$57.89
US$64.36
+11.2%
6.6%US$75.00US$59.00n/a18
Nov ’25US$58.88
US$65.44
+11.1%
5.9%US$75.00US$58.00n/a18
Oct ’25US$63.00
US$64.94
+3.1%
5.8%US$75.00US$58.00n/a18
Sep ’25US$62.11
US$64.26
+3.5%
6.1%US$75.00US$58.00n/a18
Aug ’25US$58.01
US$61.41
+5.9%
8.6%US$75.00US$56.00n/a16
Jul ’25US$52.36
US$61.03
+16.6%
8.4%US$76.00US$56.00n/a16
Jun ’25US$53.06
US$60.97
+14.9%
8.4%US$76.00US$56.00n/a16
May ’25US$53.92
US$60.91
+13.0%
9.3%US$76.00US$54.00n/a16
Apr ’25US$53.46
US$61.59
+15.2%
9.0%US$76.00US$56.00n/a16
Mar ’25US$52.24
US$62.50
+19.6%
8.5%US$76.00US$57.00n/a15
Feb ’25US$55.25
US$63.45
+14.8%
8.2%US$76.00US$57.00n/a14
Jan ’25US$57.42
US$62.92
+9.6%
11.0%US$76.00US$54.00n/a13
Dec ’24US$54.60
US$60.33
+10.5%
13.2%US$76.00US$48.00US$57.8912
Nov ’24US$47.99
US$61.42
+28.0%
14.3%US$76.00US$48.00US$58.8812
Oct ’24US$49.94
US$68.00
+36.2%
6.9%US$76.00US$59.00US$63.0015
Sep ’24US$56.20
US$68.64
+22.1%
6.0%US$76.00US$61.00US$62.1114
Aug ’24US$60.78
US$70.16
+15.4%
4.4%US$76.00US$65.00US$58.0114
Jul ’24US$59.79
US$69.88
+16.9%
4.1%US$76.00US$65.00US$52.3614
Jun ’24US$59.24
US$70.15
+18.4%
4.2%US$76.00US$65.00US$53.0615
May ’24US$62.24
US$70.47
+13.2%
4.2%US$76.00US$65.00US$53.9216
Apr ’24US$63.32
US$70.84
+11.9%
4.2%US$76.00US$65.00US$53.4616
Mar ’24US$63.52
US$71.30
+12.2%
4.6%US$78.00US$64.00US$52.2416
Feb ’24US$67.90
US$70.50
+3.8%
5.4%US$78.00US$64.00US$55.2517
Jan ’24US$63.43
US$69.82
+10.1%
5.1%US$78.00US$64.00US$57.4217
Dec ’23US$62.81
US$69.59
+10.8%
6.0%US$78.00US$61.00US$54.6017

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/29 02:57
End of Day Share Price 2024/12/27 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Realty Income Corporation is covered by 46 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Wesley GolladayBaird
Richard HightowerBarclays
Nathan CrossettBerenberg