Realty Income Valuation

O Stock  USD 53.36  0.14  0.26%   
At this time, the company appears to be undervalued. Realty Income Corp holds a recent Real Value of $58.2 per share. The prevailing price of the company is $53.36. Our model determines the value of Realty Income Corp from analyzing the company fundamentals such as Shares Outstanding of 870.77 M, return on equity of 0.0228, and Operating Margin of 0.43 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Realty Income's valuation include:
Price Book
1.3599
Enterprise Value
71.7 B
Enterprise Value Ebitda
18.4706
Price Sales
10.9752
Forward PE
35.7143
Undervalued
Today
53.36
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.
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  53.36 Real  58.2 Target  63.36 Hype  53.34
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.
58.20
Real Value
59.39
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
0.280.350.38
Details
Hype
Prediction
LowEstimatedHigh
52.1553.3454.53
Details
17 Analysts
Consensus
LowTarget PriceHigh
57.6663.3670.33
Details
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 Investments

(9.97 Billion)

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 its peers. Market capitalization of Real Estate industry is now estimated at about 53.42 Billion. Realty Income totals roughly 45.88 Billion in market capitalization claiming about 86% of equities listed under Real Estate industry.
Capitalization  Valuation  Total debt  Workforce  Revenue

Realty Income Total Value Analysis

Realty Income Corp is now estimated to have enterprise value of 71.68 B with market capitalization of 45.88 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 PriceMarket CapDebt ObligationsCash
71.68 B45.88 B21.99 B171.1 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 1.36. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Realty Income Corp last dividend was issued on the 1st of July 2024. The entity had 1032:1000 split on the 15th of November 2021. Realty Income, The Monthly Dividend Company, is an SP 500 company dedicated to providing stockholders with dependable monthly income. Additional information about the company can be obtained from the corporate website at www.realtyincome.com. Realty Income operates under REITRetail classification in the United States and is traded on New York Stock Exchange. It employs 388 people. To find out more about Realty Income Corp contact Sumit Roy at (858) 284-5000 or learn more at https://www.realtyincome.com.

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 Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Realty Income Ownership Allocation

Realty Income owns a total of 870.77 Million outstanding shares. The majority of Realty Income Corp 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 Corp 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 Corp as this could imply that something significant has changed or is about to change at the company. Please note that on April 12, 2023, Senator Gary Peters of US Senate acquired $15k to $50k worth of Realty Income Corp'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

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.
Last ReportedProjected for Next Year
Gross Profit3.8 BB
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 

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

At this time, Realty Income's Dividends Paid is very stable compared to the past year. As of the 14th of June 2024, Dividend Yield is likely to grow to 0.07, while Dividend Payout Ratio is likely to drop 1.38. . As of the 14th of June 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 ReportedProjected for Next Year
Dividends Paid2.1 B2.2 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 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.
Common Stock Shares Outstanding693 M
Quarterly Earnings Growth Y O Y-0.543
Forward Price Earnings35.7143

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.

Additional Information and Resources on Investing in Realty Stock

When determining whether Realty Income Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Realty Income's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Realty Income Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Realty Income Corp Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Realty Income Corp. 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.
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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.
Quarterly Earnings Growth
(0.54)
Dividend Share
3.071
Earnings Share
1.08
Revenue Per Share
5.973
Quarterly Revenue Growth
0.333
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 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.