REIT - Retail · NYSE
Current Price
$23.11
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Kimco Realty Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT) headquartered in Jericho, N.Y. that is one of North America's largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets. As of September 30, 2020, the company owned interests in 400 U.S. shopping centers and mixed-use assets comprising 70 million square feet of gross leasable space primarily concentrated in the top major metropolitan markets. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 60 years.
ROIC (TTM)
99.4%
ROE (TTM)
5.9%
FCF Yield
5.01%
Based on trailing twelve-month data, KIM shows a free cash flow per share of N/A and a ROIC of 99.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.01% are important context metrics when evaluating KIM's stock valuation relative to peers.
The intrinsic value of KIM 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 KIM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $23.11. 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 Kimco Realty 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 KIM'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 Kimco Realty 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. KIM's ROIC of 99.4% 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 KIM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
