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

  • PM 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 ($52.47) is trading below our estimate of fair value ($140.81)

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?

Other financial metrics that can be useful for relative valuation.

O 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/Revenue16.9x
Enterprise Value/EBITDA19.1x
PEG Ratio4.9x

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 Average27.4x
SPG Simon Property Group
21.3x-0.4%US$55.9b
KIM Kimco Realty
21.1x-5.5%US$13.2b
REG Regency Centers
31x7.7%US$11.2b
FRT Federal Realty Investment Trust
36.2x7.3%US$8.3b
O Realty Income
51.3x10.5%US$45.3b

Price-To-Earnings vs Peers: O is expensive based on its Price-To-Earnings Ratio (51.3x) compared to the peer average (27.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a2.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a2.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: O is expensive based on its Price-To-Earnings Ratio (51.3x) compared to the US Retail REITs industry average (31.5x).


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 Ratio51.3x
Fair PE Ratio40.8x

PM vs Fair Ratio: O is expensive based on its Price-To-Earnings Ratio (51.3x) compared to the estimated Fair Price-To-Earnings Ratio (40.8x).


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$52.47
US$63.02
+20.1%
8.4%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$48.00n/a12
Oct ’24US$49.94
US$68.00
+36.2%
6.9%US$76.00US$59.00n/a15
Sep ’24US$56.20
US$68.64
+22.1%
6.0%US$76.00US$61.00n/a14
Aug ’24US$60.78
US$70.16
+15.4%
4.4%US$76.00US$65.00n/a14
Jul ’24US$59.79
US$69.88
+16.9%
4.1%US$76.00US$65.00n/a14
Jun ’24US$59.24
US$70.15
+18.4%
4.2%US$76.00US$65.00n/a15
May ’24US$62.24
US$70.47
+13.2%
4.2%US$76.00US$65.00n/a16
Apr ’24US$63.32
US$70.84
+11.9%
4.2%US$76.00US$65.00n/a16
Mar ’24US$63.52
US$71.30
+12.2%
4.6%US$78.00US$64.00n/a16
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
Oct ’23US$58.20
US$77.03
+32.4%
4.4%US$84.00US$70.00US$49.9418
Sep ’23US$68.45
US$77.47
+13.2%
4.1%US$84.00US$73.00US$56.2018
Aug ’23US$73.67
US$75.29
+2.2%
4.5%US$82.00US$69.00US$60.7817
Jul ’23US$70.15
US$75.06
+7.0%
3.4%US$80.00US$69.00US$59.7918
Jun ’23US$68.08
US$75.83
+11.4%
5.6%US$86.00US$68.00US$59.2418
May ’23US$69.36
US$77.39
+11.6%
5.8%US$86.00US$68.00US$62.2418
Apr ’23US$70.90
US$77.06
+8.7%
5.3%US$86.00US$69.00US$63.3218
Mar ’23US$65.82
US$76.89
+16.8%
5.7%US$87.00US$69.00US$63.5218
Feb ’23US$69.13
US$77.61
+12.3%
6.0%US$87.00US$69.00US$67.9018

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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