O Intrinsic Value | Realty Income Corp (O) (2024)

FAQs

What is the intrinsic value of Realty Income Corporation? ›

As of 2024-09-10, the Intrinsic Value of Realty Income Corp (O) is 199.33 USD. This O valuation is based on the model Discounted Cash Flows (EBITDA Exit 5Y). With the current market price of 62.86 USD, the upside of Realty Income Corp is 217.1%.

Realty Income Valuation

As O's market price has dropped over the last 5 years, its multiple has corrected significantly, but it is still a little too expensive relative to peers. At 14.39X current year AFFO, O is trading at a 1 turn premium to the triple net average of 13.35X AFFO.

As of today (2024-09-14), KeyCorp's Intrinsic Value: Projected FCF is $37.59. The stock price of KeyCorp is $16.09. Therefore, KeyCorp's Price-to-Intrinsic-Value-Projected-FCF of today is 0.4. During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of KeyCorp was 0.83.

A second way to work out intrinsic value is by applying a financial metric, like the price-to-earnings ratio. In this case, where r = expected earnings growth rate: Intrinsic Value = Earnings Per Share (EPS) x (1 + r) x P/E Ratio.

One of them is Realty Income (O 1.16%), which not only provides reliable -- and growing -- dividend income, but the long-term capital appreciation most investors would like as well.

The intrinsic value of a business (or any investment security) is the present value of all expected future cash flows, discounted at the appropriate discount rate. Unlike relative forms of valuation that look at comparable companies, intrinsic valuation looks only at the inherent value of a business on its own.

Despite the concerns and interest rate pressures, Realty Income's business continues to perform quite well. In the first quarter, adjusted funds from operations (AFFO -- the real estate equivalent to "earnings") per share grew by more than 5% year over year.

In the current month, O has received 7 Buy Ratings, 8 Hold Ratings, and 0 Sell Ratings. O average Analyst price target in the past 3 months is $64.02.

Stock Price Forecast

The 16 analysts with 12-month price forecasts for Realty Income stock have an average target of 61.27, with a low estimate of 48 and a high estimate of 70.25. The average target predicts a decrease of -2.45% from the current stock price of 62.81.

As of today (2024-09-10), Tesla's Intrinsic Value: Projected FCF is $28.10. The stock price of Tesla is $222.1856. Therefore, Tesla's Price-to-Intrinsic-Value-Projected-FCF of today is 7.7. During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Tesla was 151.46.

What is Coca Cola Intrinsic Value? ›

As of today (2024-09-14), Coca-Cola Co's Intrinsic Value: Projected FCF is $27.70. The stock price of Coca-Cola Co is $71.41. Therefore, Coca-Cola Co's Price-to-Intrinsic-Value-Projected-FCF of today is 2.6.

What Is Intrinsic Value? Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model. Intrinsic value is different from the current market price of an asset.

Buffett uses a discounted cash flow model to estimate intrinsic value and identify undervalued stocks. The model discounts projections of future free cash flows and a conservative terminal value. A discount rate based on the Treasury yield plus an equity risk premium is applied.

Intrinsic value refers to a fundamental, objective value contained in an object, asset, or financial contract. It may be a good buy if the market price is below this value or a good sale if it's above it.

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. But it doesn't stop there, as different industries can have different average P/E ratios.

As of 2024-09-09, the Fair Value of Realty Income Corp (O) is 24.22 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 62.4 USD, the upside of Realty Income Corp is -61.2%.

Dividend Discount Model (DDM)

By discounting the future expected dividends a REIT is expected to distribute, investors can estimate its intrinsic value. This model takes into account the time value of money and the risk associated with the REIT.

Realty Income has a market cap or net worth of $54.34 billion. The enterprise value is $80.31 billion.

The intrinsic value of one BRK. B stock under the Base Case scenario is 379.92 USD. Compared to the current market price of 459.42 USD, Berkshire Hathaway Inc is Overvalued by 17%.