Realty Income Valuation
| O Stock | USD 62.46 1.00 1.63% |
At this time, the company appears to be undervalued. Realty Income holds a recent Real Value of $71.63 per share. The prevailing price of the company is $62.46. Our model determines the value of Realty Income from analyzing the company fundamentals such as Operating Margin of 0.45 %, shares outstanding of 918.11 M, and Return On Equity of 0.0249 as well as examining its technical indicators and probability of bankruptcy.
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 62.46 | Real 71.63 | Hype 62.46 | Naive 60.25 |
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: 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.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.
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 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 | 876.8 M | |
| Quarterly Earnings Growth Y O Y | 0.152 | |
| Forward Price Earnings | 38.0228 |
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 board of governors. To learn how to invest in Realty Stock, please use our How to Invest in Realty Income guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Will Retail REITs sector continue expanding? Could Realty diversify its offerings? Factors like these will boost the valuation of Realty Income. Anticipated expansion of Realty directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Realty Income data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Investors evaluate Realty Income using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Realty Income's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Realty Income's market price to deviate significantly from intrinsic value.
It's important to distinguish between Realty Income's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Realty Income should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Realty Income's market price signifies the transaction level at which participants voluntarily complete trades.