Federal Realty Investment Trust (FRT) Stock Valuation — PE Analysis
REIT - Retail · NYSE
Current Price
$125.84
PE Ratio (TTM)
21.4x
Intrinsic Value
$89.75
-40.2% 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 attracts strong tenant demand and allows for premium rents.
↑Mixed-Use Development Expertise
FRT's strategy of integrating residential and office components into its retail properties creates vibrant ecosystems. This diversifies revenue streams and enhances foot traffic for retail tenants.
↑Tenant Diversification and Quality
The trust maintains a diverse tenant base, including essential retailers and strong national brands. This reduces reliance on any single tenant and supports consistent rental income.
INVESTMENT RISKS
↓E-commerce Competition
The ongoing shift to online shopping continues to challenge traditional brick-and-mortar retail. FRT must adapt its tenant mix and property offerings to remain competitive.
↓Economic Downturn Impact
Recessions can lead to reduced consumer spending and tenant defaults, impacting rental income and property values. FRT's performance is tied to broader economic health.
↓Interest Rate Sensitivity
As a REIT, FRT relies on debt financing. Rising interest rates increase borrowing costs, potentially reducing profitability and dividend growth capacity.
Base case
FRT base case PE valuation
A base case PE valuation for FRT estimates a fair value of about $89.75 per share, against a current price of $125.84. The model assumes -2.2% annual earnings growth, a 21x target PE multiple, and a 10% discount rate.
Intrinsic Value
$89.75
Margin of safety
-40.2%
Expected annual return
-6.5%
Base case assumptions: -2.2% annual earnings growth, 21x 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 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)
21.4x
PEG Ratio
0.32
Earnings Yield
4.68%
ROE (TTM)
15.6%
Revenue/Share (TTM)
$15.24
Dividend Yield
3.57%
Debt/Equity
1.49x
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 21.4x combined with a PEG ratio of 0.32 provides a growth-adjusted perspective. A PEG below 1.0 suggests FRT may be undervalued relative to its 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 (21.4x) against the REIT - Retail median to assess relative pricing, (2) check the PEG ratio (0.32) 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 0.32, calculated by dividing the PE ratio (21.4x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 FRT, with a strong ROE of 15.6%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.