REIT - Retail · NYSE
Current Price
$43.52
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on NNN REIT, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
National Retail Properties invests primarily in high-quality retail properties subject generally to long-term, net leases. As of September 30, 2020, the company owned 3,114 properties in 48 states with a gross leasable area of approximately 32.4 million square feet and with a weighted average remaining lease term of 10.7 years.
ROIC (TTM)
6.3%
ROE (TTM)
8.9%
FCF Yield
8.06%
Based on trailing twelve-month data, NNN shows a free cash flow per share of N/A and a ROIC of 6.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 8.06% are important context metrics when evaluating NNN's stock valuation relative to peers.
The intrinsic value of NNN 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 NNN is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $43.52. 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 NNN REIT, Inc.: (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 NNN'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 NNN REIT, Inc., 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. NNN's ROIC of 6.3% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For NNN, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
