Realty Income Valuation
| O Stock | USD 61.47 0.34 0.55% |
At this time, the company appears to be undervalued. Realty Income holds a recent Real Value of $67.48 per share. The prevailing price of the company is $61.47. Our model determines the value of Realty Income from analyzing the company fundamentals such as Return On Equity of 0.0242, shares outstanding of 870.87 M, and Operating Margin of 0.44 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Realty Income's valuation include:
Price Book 1.3875 | Enterprise Value 79.2 B | Enterprise Value Ebitda 19.8396 | Price Sales 11.3469 | Forward PE 39.2157 |
Undervalued
Today
Please note that Realty Income's price fluctuation is very steady at this time. Calculation of the real value of Realty Income is based on 3 months time horizon. Increasing Realty Income's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Realty Income is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Realty Stock. However, Realty Income's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 61.47 | Real 67.48 | Target 63.36 | Hype 61.56 | Naive 61.1 |
The intrinsic value of Realty Income's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Realty Income's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Realty Income helps investors to forecast how Realty stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Realty Income more accurately as focusing exclusively on Realty Income's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Realty Income's intrinsic value based on its ongoing forecasts of Realty Income's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Realty Income's closest peers.
Realty Income Cash |
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Realty Valuation Trend
Knowing Realty Income's actual value is paramount for traders when making sound investment determinations. Using both Realty Income's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Realty Revenue by Product
Realty Income Total Value Analysis
Realty Income is now estimated to have enterprise value of 79.24 B with market capitalization of 53.83 B, debt of 21.99 B, and cash on hands of 171.1 M. Please note that enterprise value may be misleading and is a subject to accounting manipulations. We encourage investors to cautiously inspect all of the Realty Income fundamentals before making security selection decision based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
79.24 B | 53.83 B | 21.99 B | 171.1 M |
Realty Income Investor Information
About 79.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.39. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Realty Income last dividend was issued on the 1st of November 2024. The entity had 1032:1000 split on the 15th of November 2021. Based on the measurements of operating efficiency obtained from Realty Income's historical financial statements, Realty Income may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.64 | 0.4229 |
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| Total Cash From Operating Activities | 3.1 B | 3 B |
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| Operating Income | 1.8 B | 1.7 B |
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Realty Income Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Realty Income has an asset utilization ratio of 7.06 percent. This suggests that the Company is making $0.0706 for each dollar of assets. An increasing asset utilization means that Realty Income is more efficient with each dollar of assets it utilizes for everyday operations.Realty Income Ownership Allocation
Realty Income owns a total of 870.87 Million outstanding shares. The majority of Realty Income outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Realty Income to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Realty Income. Please pay attention to any change in the institutional holdings of Realty Income as this could imply that something significant has changed or is about to change at the company. On August 3, 2021, Senator Gary Peters of US Senate acquired $15k to $50k worth of Realty Income's common stock.Realty Income Profitability Analysis
The company reported the annual revenue of 4.08 B. Net Income to common stockholders was 876.91 M with gross profit before all taxes, overhead, and interest of 3.11 B.Realty Income Past Distributions to stockholders
About Realty Income Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Realty Income. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Realty Income based exclusively on its fundamental and basic technical indicators. By analyzing Realty Income's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Realty Income's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Realty Income. We calculate exposure to Realty Income's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Realty Income's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.8 B | 4 B | |
| Pretax Profit Margin | 0.23 | 0.36 | |
| Operating Profit Margin | 0.42 | 0.64 | |
| Net Profit Margin | 0.21 | 0.20 | |
| Gross Profit Margin | 0.92 | 1.05 |
A single share of Realty Income represents a small ownership stake in the entity. As a stockholder of Realty, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Realty Income Dividends Analysis For Valuation
At this time, Realty Income's Dividends Paid is very stable compared to the past year. As of the 11th of October 2024, Dividend Yield is likely to grow to 0.07, while Dividend Payout Ratio is likely to drop 1.38. . As of the 11th of October 2024, Retained Earnings is likely to grow to about (6.4 B). In addition to that, Retained Earnings Total Equity is likely to grow to about (4.7 B)
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 2.1 B | 2.2 B | |
| Dividend Yield | 0.05 | 0.07 | |
| Dividend Payout Ratio | 2.42 | 1.38 | |
| Dividend Paid And Capex Coverage Ratio | 1.45 | 1.52 |
There are various types of dividends Realty Income can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Realty shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Realty Income directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Realty pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Realty Income by the value of the dividends paid out.
Realty Income Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 693 M | |
| Forward Price Earnings | 39.2157 |
Realty Income Current Valuation Indicators
Realty Income's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Realty Income's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Realty Income, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Realty Income's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Realty Income's worth.Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Realty Income. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. To learn how to invest in Realty Stock, please use our How to Invest in Realty Income guide.You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Is Retail REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Realty Income. If investors know Realty will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Realty Income listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Dividend Share 3.088 | Earnings Share 1.08 | Revenue Per Share 6.01 | Quarterly Revenue Growth 0.316 | Return On Assets 0.0211 |
The market value of Realty Income is measured differently than its book value, which is the value of Realty that is recorded on the company's balance sheet. Investors also form their own opinion of Realty Income's value that differs from its market value or its book value, called intrinsic value, which is Realty Income's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Realty Income's market value can be influenced by many factors that don't directly affect Realty Income's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Realty Income's value and its price as these two are different measures arrived at by different means. Investors typically determine if Realty Income is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Realty Income's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.