Vornado Realty Trust (VNO): A Fresh Look at Valuation Following Modest Share Price Uptick

Vornado Realty Trust (VNO) has caught investors’ attention again as its share price edged up slightly today, even as the broader market experienced a dip. The move comes amid ongoing discussions about the company’s portfolio strategy and Manhattan office exposure.

See our latest analysis for Vornado Realty Trust.

Vornado Realty Trust’s share price has had a choppy ride lately, with today’s uptick providing a small counterpoint to its recent 7-day and 30-day pullbacks. While momentum has been stop-start this year, the longer-term story is more encouraging. A robust 71% total shareholder return over three years suggests that patient investors have still come out well ahead despite shorter-term volatility.

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With shares still trading just shy of analyst targets and recent pullbacks, the big question for investors now is whether Vornado is undervalued or if the market is already factoring in all future growth prospects.

Most Popular Narrative: 4.7% Undervalued

Vornado Realty Trust’s most closely followed narrative assigns a fair value of $39.80 per share, modestly above its last close of $37.94. This view positions the stock as offering slight value in the current landscape. Here is what drives that perspective.

The current valuation likely anticipates continued robust rent growth in Manhattan's premium office segment, as pent-up demand, low vacancy in Class A properties, and severely constrained new supply are forecasted to create a landlord's market. This is expected to drive a significant step-up in revenues and same-store NOI as new leases and lease roll-ups take effect in coming years.

Read the complete narrative.

What’s behind the numbers? This narrative is built on one stunning prediction for future growth and a profit margin forecast that flips the script on recent results. Want to see what bold assumptions power this valuation? The details might surprise you.

Result: Fair Value of $39.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, near-term risks such as market volatility and uncertainty about cash flow trends could challenge even the most optimistic growth outlook for Vornado Realty Trust.

Find out about the key risks to this Vornado Realty Trust narrative.

Build Your Own Vornado Realty Trust Narrative

If you have a different take on Vornado Realty Trust's outlook or want to test your own assumptions, you can put together a personal narrative in just a few minutes. Do it your way

A great starting point for your Vornado Realty Trust research is our analysis highlighting 3 key rewards and 5 important warning signs that could impact your investment decision.

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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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