Realty Income Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($57.39) is trading below our estimate of fair value ($97.66)

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 Ratio58x
EarningsUS$866.69m
Market CapUS$49.93b

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 Average37.7x
SPG Simon Property Group
24.2x-1.2%US$67.9b
KIM Kimco Realty
48.2x13.0%US$16.9b
REG Regency Centers
34.6x4.4%US$13.6b
ADC Agree Realty
43.8x9.3%US$8.0b
O Realty Income
58x18.6%US$49.9b

Price-To-Earnings vs Peers: O is expensive based on its Price-To-Earnings Ratio (58x) compared to the peer average (37.7x).


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
1.2x-118.9%US$847.27m
RVIC Retail Value
0.2xn/aUS$5.72m
No more companies available in this PE range
O 58.0xIndustry Avg. 34.6xNo. of Companies6PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: O is expensive based on its Price-To-Earnings Ratio (58x) compared to the US Retail REITs industry average (34.6x).


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 Ratio58x
Fair PE Ratio45.2x

Price-To-Earnings vs Fair Ratio: O is expensive based on its Price-To-Earnings Ratio (58x) compared to the estimated Fair Price-To-Earnings Ratio (45.2x).


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$57.39
US$64.53
+12.4%
6.4%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$48.00n/a12
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
Nov ’23US$62.21
US$70.65
+13.6%
7.8%US$83.50US$61.00US$47.9917

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies