REIT - Office · NYSE
Current Price
$42.41
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on SL Green Realty Corp. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
SL Green Realty Corp., an S&P 500 company and Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of December 31, 2020, SL Green held interests in 88 buildings totaling 38.2 million square feet. This included ownership interests in 28.6 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.
ROIC (TTM)
2.8%
ROE (TTM)
-3.9%
FCF Yield
1.66%
Based on trailing twelve-month data, SLG shows a free cash flow per share of N/A and a ROIC of 2.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 1.66% are important context metrics when evaluating SLG's stock valuation relative to peers.
The intrinsic value of SLG 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 SLG is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $42.41. 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 SL Green Realty Corp.: (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 - Office industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting SLG'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 SL Green Realty Corp., this means projecting how much free cash flow the REIT - Office will produce over the next 5-10 years, then discounting those amounts to today's dollars. SLG's ROIC of 2.8% 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 SLG, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
