Realty Income Valuation

O Stock  USD 59.20  2.07  3.38%   
What is the intrinsic value of Realty stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Realty Income, is its stock price multiplied by the total number of shares outstanding, calculating Realty Income's enterprise value requires a different approach. It uses Realty Income's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Realty Income Enterprise Value is very stable at the moment as compared to the past year. Realty Income reported last year Enterprise Value of 55.93 Billion. As of 23rd of March 2023, Tangible Asset Value is likely to grow to about 44 B, while Free Cash Flow is likely to drop (6.1 B).
Realty Income Corp holds a recent Real Value of $66.42 per share. The prevailing price of the company is $59.2. At this time, the company appears to be undervalued. Our model determines the value of Realty Income Corp from analyzing the company fundamentals such as Operating Margin of 0.39 %, return on equity of 0.0323 %, and Shares Outstanding of 660.52 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support obtaining undervalued entities and abandoning overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Realty Income Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Realty Income's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Realty Most Recent Valuation Data

Dividend Share
Change Receivables
-29.5 M
Fiscal Year End
Property Plant And Equipment Net
1.1 B
Today 59.20
Please note that Realty Income's price fluctuation is very steady at this time. Calculation of the real value of Realty Income Corp 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.
Our valuation method for Realty Income Corp is useful when determining the fair value of the Realty stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Realty Income. 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.
Real Value
Estimating the potential upside or downside of Realty Income Corp 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:
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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. When choosing an evaluation method for Realty Income Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Realty Valuation Drivers Correlation

Many accounts on the financial statements of Realty Income Corp are highly interrelated and sometimes correlated. Consequently, when conducting Realty's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Realty
Click cells to compare fundamentals

Realty Valuation Trend

Knowing Realty Income's actual value is paramount for traders to make sound investment determinations. Realty Income's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Realty Income's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Realty Income's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Realty Market Cap

Realty Income Corp is considered to be number one stock in market capitalization category among related companies. Market capitalization of Real Estate industry is now estimated at about 311.45 Billion. Realty Income retains roughly 40.47 Billion in market capitalization claiming about 13% of equities listed under Real Estate industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Realty Income Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Realty Income's current stock value. Our valuation model uses many indicators to compare Realty Income value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Realty Income competition to find correlations between indicators driving Realty Income's intrinsic value. More Info.
Realty Income Corp is regarded fifth in price to book category among related companies. It is regarded fifth in beta category among related companies totaling about  0.52  of Beta per Price to Book. The ratio of Price to Book to Beta for Realty Income Corp is roughly  1.91 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Realty Income by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Realty Income's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Realty Income's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Realty Income's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Realty Income and how it compares across the competition.

About Realty Income Valuation

The stock valuation mechanism determines the current worth of Realty Income Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Realty Income Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Realty Income Corp based exclusively on its fundamental and basic technical indicators. By analyzing Realty Income's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Realty Income's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Realty Income's related companies.
Fiscal Year End
Retail REITs
Full Time Employees
Service Category
Equity Real Estate Investment Trusts (REITs)
Last ReportedProjected for 2023
Gross Profit3.1 B3.4 B
Profit Margin 0.26  0.24 

Realty Income Quarterly Enterprise Value

55.93 Billion

8 Steps to conduct Realty Income's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Realty Income's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Realty Income's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Realty Income's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Realty Income's revenue streams: Identify Realty Income's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Realty Income's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Realty Income's growth potential: Evaluate Realty Income's management, business model, and growth potential.
  • Determine Realty Income's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Realty Income's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Realty Income's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Realty Income's value is low or high relative to the company's performance and growth projections. Determining the market value of Realty Income can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

Realty Income Preferred Dividends Income Statement Impact is very stable at the moment as compared to the past year. Realty Income reported last year Preferred Dividends Income Statement Impact of 15.56 Million. As of 23rd of March 2023, Dividends per Basic Common Share is likely to grow to 3.00, while Payment of Dividends and Other Cash Distributions is likely to drop (1.9 B). . Realty Income Price to Earnings Ratio are very stable at the moment as compared to the past year. Realty Income reported last year Price to Earnings Ratio of 44.67. As of 23rd of March 2023, Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to grow to about 3.3 B, while Accumulated Retained Earnings Deficit are likely to drop (5.6 B).
Last ReportedProjected for 2023
Preferred Dividends Income Statement Impact15.6 M22.3 M
Payment of Dividends and Other Cash Distributions-1.8 B-1.9 B
Dividend Yield 0.047  0.0435 
Dividends per Basic Common Share 2.97  3.00 
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 Corp 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. Note, investing in growth stocks can be very risky. If the company such as Realty Income does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding612.2 M
Quarterly Earnings Growth Y O Y45.097
Forward Price Earnings44.0529
Retained Earnings-5.5 B
Retained Earnings Total Equity-5.5 B

Realty Income Current Valuation Indicators

Valuation refers to the process of determining the present value of Realty Income Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Realty we look at many different elements of the entity such as Realty's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Realty Income's valuation analysis is also 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 learn how to invest in Realty Stock please use our How to Invest in Realty Income guide. You can also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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Is Realty Income's industry 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.
Quarterly Earnings Growth
Dividend Share
Earnings Share
Revenue Per Share
Quarterly Revenue Growth
The market value of Realty Income Corp 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 Realty Income value 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.