REIT - Retail · NYSE
Current Price
$110.61
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Federal Realty Investment Trust with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for FRTFederal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 106 properties include approximately 3,100 tenants, in 25 million square feet, and approximately 3,200 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 54 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
ROIC (TTM)
561.4%
ROE (TTM)
12.7%
FCF Yield
5.53%
Based on trailing twelve-month data, FRT shows a free cash flow per share of N/A and a ROIC of 561.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.53% are important context metrics when evaluating FRT's stock valuation relative to peers.
The intrinsic value of FRT depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether FRT is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $110.61. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Federal Realty Investment Trust: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on REIT - Retail industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting FRT's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Federal Realty Investment Trust, this means projecting how much free cash flow the REIT - Retail will produce over the next 5-10 years, then discounting those amounts to today's dollars. FRT's ROIC of 561.4% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For FRT, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
