Federal Realty Investment Trust (FRT) Stock Valuation — PE Analysis
REIT - Retail · NYSE
Current Price
$116.74
PE Ratio (TTM)
23.3x
Intrinsic Value
$116.42
-0.3% margin of safety
COMPETITIVE MOAT
↑Prime Retail Locations
FRT owns high-quality, well-located shopping centers in affluent, densely populated areas. This prime real estate is difficult for competitors to replicate.
↑Tenant Diversification and Quality
A diverse mix of strong, often national, tenants across various retail categories reduces reliance on any single business. This stability is a key advantage.
↑Long-Term Leases and Tenant Relationships
FRT benefits from long-term leases with established tenants, providing predictable cash flow. Strong relationships foster tenant retention and renewals.
INVESTMENT RISKS
↓Economic Downturn Impact
A significant economic recession could lead to tenant defaults and reduced consumer spending, negatively affecting rental income and occupancy rates.
↓Tenant Concentration Risk
While diversified, a substantial portion of revenue could still be tied to a few anchor tenants. The failure of a major tenant could have a significant impact.
↓Lease Expirations and Renewals
A large number of leases expiring in a short period could lead to renegotiation challenges or vacancies if tenants choose not to renew.
Base case
FRT base case PE valuation
A base case PE valuation for FRT estimates a fair value of about $116.42 per share, against a current price of $116.74. The model assumes 5.4% annual earnings growth, a 23.07x target PE multiple, and a 10% discount rate.
Intrinsic Value
$116.42
Margin of safety
-0.3%
Expected annual return
-0.1%
Base case assumptions: 5.4% annual earnings growth, 23.07x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the FRT PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Federal Realty Investment Trust respond.
Open PE Calculator for FRTCompany Overview
Federal Realty Investment Trust (FRT) stands out as a premier entity specializing in the acquisition, management, and redevelopment of high-quality retail properties. These assets are strategically situated primarily in prominent coastal metropolitan areas, spanning the Eastern Seaboard from Washington D.C. to Boston, and extending to key West Coast cities such as San Francisco and Los Angeles. Established in 1962, Federal Realty's core objective is to generate enduring, consistent growth by concentrating investments in communities where consumer demand for retail offerings significantly surpasses existing supply. The company is particularly skilled at developing vibrant, integrated urban districts, exemplified by projects like Santana Row in San Jose, California; Pike & Rose in North Bethesda, Maryland; and Assembly Row in Somerville, Massachusetts. These dynamic, mixed-use environments seamlessly blend shopping, dining, residential, and commercial spaces, fostering cherished destination experiences for their local populations. FRT's extensive portfolio encompasses 106 properties, accommodating roughly 3,100 businesses across 25 million square feet of commercial space, alongside approximately 3,200 residential units. Demonstrating exceptional financial stability, Federal Realty boasts an unparalleled track record in the REIT sector, having increased its quarterly shareholder dividends for 54 consecutive years. As an S&P 500 index constituent, its shares are publicly traded on the NYSE under the ticker FRT.
Financial Metrics — FRT PE Stock Valuation Data
PE Ratio (TTM)
23.3x
PEG Ratio
0.86
Earnings Yield
4.34%
ROE (TTM)
13.3%
Revenue/Share (TTM)
$15.50
Dividend Yield
3.87%
Debt/Equity
1.44x
Frequently Asked Questions
What is the PE ratio of FRT?
The trailing twelve-month PE ratio of FRT reflects how much investors pay per dollar of Federal Realty Investment Trust's earnings. This metric is most useful when compared to REIT - Retail peers and the company's own historical range.
Is FRT overvalued based on PE ratio?
FRT's PE of 23.3x combined with a PEG ratio of 0.86 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Retail, a DCF analysis may be more appropriate.
How do I value FRT stock using PE ratio?
To value Federal Realty Investment Trust using PE: (1) Compare the current PE (23.3x) against the REIT - Retail median to assess relative pricing, (2) check the PEG ratio (0.86) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of FRT?
FRT's PEG ratio is 0.86, calculated by dividing the PE ratio (23.3x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for FRT stock valuation?
PE ratio gives a quick relative read — how FRT is priced versus REIT - Retail peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See FRT DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Real Estate valuationsP/E and DCF value FRT with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.