W. P. Carey Inc. (WPC) Stock Valuation — PE Analysis
REIT - Diversified · NYSE
Current Price
$76.71
PE Ratio (TTM)
32.7x
Intrinsic Value
$132.19
+42.0% margin of safety
COMPETITIVE MOAT
↑Diversified Net Lease Portfolio
WPC's extensive and diversified portfolio of net-leased properties across various industries provides a stable and predictable income stream. This broad diversification mitigates risks associated with any single tenant or sector.
↑Long-Term Leases
The company's strategy of securing long-term leases with creditworthy tenants creates significant revenue visibility and reduces churn. This contractual revenue stream offers a strong defensive quality.
↑Experienced Management Team
WPC benefits from a seasoned management team with deep expertise in real estate acquisition, development, and asset management. Their track record supports effective capital allocation and portfolio growth.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a REIT, WPC is susceptible to rising interest rates, which can increase borrowing costs and potentially depress property valuations. This impacts profitability and refinancing capabilities.
↓Tenant Credit Risk
While leases are long-term, tenant defaults or bankruptcies can lead to vacancies and lost rental income. The financial health of key tenants is a constant consideration.
↓Economic Downturn Impact
A broad economic recession could negatively affect tenant businesses, leading to increased defaults and reduced demand for industrial and office space. This impacts occupancy and rental growth.
Base case
WPC base case PE valuation
A base case PE valuation for WPC estimates a fair value of about $132.19 per share, against a current price of $76.71. The model assumes 19.5% annual earnings growth, a 33x target PE multiple, and a 10% discount rate.
Intrinsic Value
$132.19
Margin of safety
+42.0%
Expected annual return
+11.5%
Base case assumptions: 19.5% annual earnings growth, 33x 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 WPC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for W. P. Carey Inc. respond.
Open PE Calculator for WPCCompany Overview
W. P. Carey is recognized as a leading net lease Real Estate Investment Trust (REIT), boasting an enterprise value of approximately $18 billion. As of September 30, 2020, its extensive portfolio comprises 1,215 essential net lease properties, spanning an estimated 142 million square feet of commercial real estate. For nearly five decades, the company has strategically invested in high-quality, single-tenant industrial, warehouse, office, retail, and self-storage assets. These properties are secured by long-term net leases, which incorporate built-in rent increases. The portfolio's primary geographical footprint is in the United States, along with Northern and Western Europe, and it exhibits strong diversification across tenant profiles, property categories, locations, and the industries of its occupants.
Financial Metrics — WPC PE Stock Valuation Data
PE Ratio (TTM)
32.7x
PEG Ratio
1.59
Earnings Yield
3.05%
ROE (TTM)
6.3%
Revenue/Share (TTM)
$9.00
Dividend Yield
4.77%
Debt/Equity
1.06x
Frequently Asked Questions
What is the PE ratio of WPC?
The trailing twelve-month PE ratio of WPC reflects how much investors pay per dollar of W. P. Carey Inc.'s earnings. This metric is most useful when compared to REIT - Diversified peers and the company's own historical range.
Is WPC overvalued based on PE ratio?
WPC's PE of 32.7x combined with a PEG ratio of 1.59 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Diversified, a DCF analysis may be more appropriate.
How do I value WPC stock using PE ratio?
To value W. P. Carey Inc. using PE: (1) Compare the current PE (32.7x) against the REIT - Diversified median to assess relative pricing, (2) check the PEG ratio (1.59) 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 WPC?
WPC's PEG ratio is 1.59, calculated by dividing the PE ratio (32.7x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for WPC stock valuation?
PE ratio gives a quick relative read — how WPC is priced versus REIT - Diversified 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 WPC 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 WPC 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.