Realty Stock Valuation

O -  USA Stock  

USD 67.99  0.77  1.15%

What is the current enterprise value of Realty Income Corp? 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 Corp holds a recent Real Value of $73.17 per share. The prevailing price of the company is $67.99. 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 Return On Equity of 2.00 %, operating margin of 91.55 %, and Shares Outstanding of 565.76 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support picking up undervalued entities and discarding overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
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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.
Undervalued
Today 67.99
Share
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.
73.17
Real Value
74.60
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 (5)
LowProjected EPSHigh
3.453.563.60
Details
Hype
Prediction
LowEstimated ValueHigh
65.7867.2168.64
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.291.331.37
Details
13 Analysts
Consensus
LowTarget PriceHigh
63.0077.5085.00
Details

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 considered to be number one stock in price to earning category among related companies. It is considered to be number one stock in last dividend paid category among related companies creating about  0.05  of Last Dividend Paid per Price to Earning. The ratio of Price to Earning to Last Dividend Paid for Realty Income Corp is roughly  18.28 . 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 equity 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.
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 367 people.
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

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 Valuation Growth Rates

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.
Quick Ratio0.63
Earnings Quarterly Growth-96.60%
Revenue Growth65.10%
Payout Ratio303.26%
Enterprise Value To Ebitda29.83
Earnings Growth-97.60%
Enterprise Value To Revenue27.31
Please check Your Equity Center. Note that the Realty Income Corp information on this page should be used as a complementary analysis to other Realty Income's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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When running Realty Income Corp price analysis, check to measure Realty Income's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Realty Income is operating at the current time. Most of Realty Income's value examination focuses on studying past and present price action to predict the probability of Realty Income's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Realty Income's price. Additionally, you may evaluate how the addition of Realty Income to your portfolios can decrease your overall portfolio volatility.
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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.
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.