REIT - Diversified · NYSE
Current Price
$72.06
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on W. P. Carey Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
ROIC (TTM)
21.0%
ROE (TTM)
6.3%
FCF Yield
7.14%
Based on trailing twelve-month data, WPC shows a free cash flow per share of N/A and a ROIC of 21.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 7.14% are important context metrics when evaluating WPC's stock valuation relative to peers.
The intrinsic value of WPC 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 WPC is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $72.06. 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 W. P. Carey 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 - Diversified industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting WPC'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 W. P. Carey Inc., this means projecting how much free cash flow the REIT - Diversified will produce over the next 5-10 years, then discounting those amounts to today's dollars. WPC's ROIC of 21.0% 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 WPC, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
