REIT - Retail · NYSE
Current Price
$63.29
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Realty Income Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with our commercial clients. To date, the company has declared 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since Realty Income's public listing in 1994 (NYSE: O). The company is a member of the S&P 500 Dividend Aristocrats index. Additional information about the company can be obtained from the corporate website at www.realtyincome.com.
ROIC (TTM)
24.5%
ROE (TTM)
2.7%
FCF Yield
6.55%
Based on trailing twelve-month data, O shows a free cash flow per share of N/A and a ROIC of 24.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 6.55% are important context metrics when evaluating O's stock valuation relative to peers.
The intrinsic value of O 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 O is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $63.29. 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 Realty Income Corporation: (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 O'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 Realty Income Corporation, 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. O's ROIC of 24.5% 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 O, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
