Current Price
$46.59
PE Ratio (TTM)
22.7x
Intrinsic Value
$38.63
-20.6% margin of safety
COMPETITIVE MOAT
↑Long-term Net Lease Agreements
NNN's extensive portfolio of properties leased under long-term, triple-net agreements provides predictable and stable rental income. This structure shifts property operating expenses to tenants, reducing NNN's financial volatility.
↑Diversified Tenant Base
The company's tenants operate across various industries, mitigating concentration risk. This diversification helps ensure consistent occupancy and rental revenue even if one sector experiences a downturn.
↑Experienced Management Team
Steve Horn's leadership and the company's long history in real estate investment suggest a deep understanding of market dynamics and tenant needs. This experience aids in strategic property acquisition and tenant retention.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a REIT, NNN is susceptible to rising interest rates, which can increase borrowing costs and potentially depress property valuations. This could impact profitability and future acquisition strategies.
↓Tenant Default Risk
While diversified, a significant tenant default could still impact rental income and occupancy rates. The financial health of individual tenants remains a key consideration.
↓Economic Downturn Impact
A broad economic recession could lead to reduced consumer spending, impacting the performance of NNN's retail tenants. This could indirectly affect their ability to meet lease obligations.
Base case
NNN base case PE valuation
A base case PE valuation for NNN estimates a fair value of about $38.63 per share, against a current price of $46.59. The model assumes 0.9% annual earnings growth, a 23x target PE multiple, and a 10% discount rate.
Intrinsic Value
$38.63
Margin of safety
-20.6%
Expected annual return
-3.7%
Base case assumptions: 0.9% annual earnings growth, 23x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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 NNN PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for NNN REIT, Inc. respond.
Open PE Calculator for NNNCompany Overview
NNN REIT primarily allocates capital to top-tier retail real estate, generally held under extended net lease contracts. As of September 30, 2020, their holdings encompassed 3,114 properties spanning 48 U.S. states. These assets collectively accounted for roughly 32.4 million square feet of gross leasable area, with an average remaining lease duration of 10.7 years.
Financial Metrics — NNN PE Stock Valuation Data
PE Ratio (TTM)
22.7x
PEG Ratio
n/m
Earnings Yield
4.40%
ROE (TTM)
8.8%
Revenue/Share (TTM)
$4.95
Dividend Yield
5.15%
Debt/Equity
1.10x
Frequently Asked Questions
What is the PE ratio of NNN?
The trailing twelve-month PE ratio of NNN reflects how much investors pay per dollar of NNN REIT, Inc.'s earnings. This metric is most useful when compared to REIT - Retail peers and the company's own historical range.
Is NNN overvalued based on PE ratio?
NNN's PE of 22.7x combined with a PEG ratio of -5.43 provides a growth-adjusted perspective. NNN has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 NNN stock using PE ratio?
To value NNN REIT, Inc. using PE: (1) Compare the current PE (22.7x) against the REIT - Retail median to assess relative pricing, (2) check the PEG ratio (-5.43) 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 NNN?
NNN's PEG ratio is -5.43, calculated by dividing the PE ratio (22.7x) by the expected earnings growth rate. Because NNN has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for NNN stock valuation?
PE ratio gives a quick relative read — how NNN 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 NNN 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 NNN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.