Realty Income Valuation
| O Stock | USD 64.27 0.37 0.58% |
At this time, the company appears to be undervalued. Realty Income holds a recent Real Value of $68.62 per share. The prevailing price of the company is $64.27. Our model determines the value of Realty Income from analyzing the company fundamentals such as Return On Equity of 0.0249, operating margin of 0.45 %, and Shares Outstanding of 918.11 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Realty Income's valuation include:
Price Book 1.4833 | Enterprise Value | Enterprise Value Ebitda 18.6298 | Price Sales 10.3162 | Forward PE 39.5257 |
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 64.27 | Real 68.62 | Target 64.31 | Hype 64.02 |
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: 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 Cash |
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Realty Revenue by Product
Realty Income Total Value Analysis
Realty Income is now estimated to have enterprise value of 86.4 B with market capitalization of 57.92 B, debt of 26.76 B, and cash on hands of 444.96 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 Price | Market Cap | Debt Obligations | Cash |
86.4 B | 57.92 B | 26.76 B | 444.96 M |
Realty Income Investor Information
About 80.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.48. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Realty Income last dividend was issued on the 30th of January 2026. The entity had 1032:1000 split on the 15th of November 2021. Based on the measurements of operating efficiency obtained from Realty Income's historical financial statements, Realty Income may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.7 | 0.51 |
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| Total Cash From Operating Activities | 4.3 B | 4.1 B |
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| Operating Income | 2.8 B | 2.7 B |
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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 7.66 percent. This suggests that the Company is making $0.0766 for each dollar of assets. An increasing asset utilization means that Realty Income is more efficient with each dollar of assets it utilizes for everyday operations.Realty Income Profitability Analysis
Based on the measurements of profitability obtained from Realty Income's financial statements, Realty Income's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Realty Income's ability to earn profits and add value for shareholders.Net Income | First Reported 1994-09-30 | Previous Quarter 196.9 M | Current Value 315.8 M | Quarterly Volatility 69.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 1.05 | 1.07 |
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| Net Profit Margin | 0.18 | 0.19 |
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| Operating Profit Margin | 0.7 | 0.51 |
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| Pretax Profit Margin | 0.36 | 0.2 |
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| Return On Assets | 0.0137 | 0.0144 |
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| Return On Equity | 0.0242 | 0.0255 |
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For Realty Income profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Realty Income to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Realty Income utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Realty Income's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Realty Income over time as well as its relative position and ranking within its peers.
Realty Income Earnings per Share Projection vs Actual
The next projected EPS of Realty Income is estimated to be 0.399925 with future projections ranging from a low of 0.3675 to a high of 0.4525. Realty Income's most recent 12-month trailing earnings per share (EPS TTM) is at 1.07. Please be aware that the consensus of earnings estimates for Realty Income is based on EPS before non-recurring items and includes expenses related to employee stock options.Realty Income Earnings Estimation Breakdown
The calculation of Realty Income's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Realty Income is estimated to be 0.399925 with the future projection ranging from a low of 0.3675 to a high of 0.4525. Please be aware that this consensus of annual earnings estimates for Realty Income is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.37 Lowest | Expected EPS | 0.45 Highest |
Realty Income Earnings Projection Consensus
Suppose the current estimates of Realty Income's value are higher than the current market price of the Realty Income stock. In this case, investors may conclude that Realty Income is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Realty Income's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2026 | Current EPS (TTM) | |
| 24 | 68.98% | 0.0 | 0.399925 | 1.07 |
Realty Income Ownership Allocation
Realty Income owns a total of 918.11 Million outstanding shares. The majority of Realty Income 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 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 as this could imply that something significant has changed or is about to change at the company. On August 3, 2021, Senator Gary Peters of US Senate acquired $15k to $50k worth of Realty Income's common stock.Realty Income Profitability Analysis
The company reported the annual revenue of 5.27 B. Net Income to common stockholders was 867.34 M with gross profit before all taxes, overhead, and interest of 5.2 B.Realty Income Past Distributions to stockholders
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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.6 B | 5.9 B | |
| Pretax Profit Margin | 0.20 | 0.36 | |
| Operating Profit Margin | 0.51 | 0.70 | |
| Net Profit Margin | 0.19 | 0.18 | |
| Gross Profit Margin | 1.07 | 1.05 |
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 11th of February 2026, Dividend Yield is likely to grow to 0.07, while Dividend Paid And Capex Coverage Ratio is likely to drop 0.73. . As of the 11th of February 2026, Price Earnings Ratio is likely to grow to 51.20, though Retained Earnings are likely to grow to (7.4 B).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 3.1 B | 3.3 B | |
| Dividend Yield | 0.07 | 0.07 | |
| Dividend Payout Ratio | 2.82 | 2.96 | |
| Dividend Paid And Capex Coverage Ratio | 1.19 | 0.73 |
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 | 39.5257 |
Realty Income Current Valuation Indicators
Realty Income's valuation analysis is 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 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 employment. To learn how to invest in Realty Stock, please use our How to Invest in Realty Income guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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.
Quarterly Earnings Growth 0.152 | Dividend Share 3.205 | Earnings Share 1.07 | Revenue Per Share | Quarterly Revenue Growth 0.103 |
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.