Realty Income Corporation

Real EstateREIT - RetailNYSE

$61.92

Market Cap: $57.74B

Realty Income Corporation (O) Valuation Summary

Updated May 10, 2026 11:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$36.84 – $256.55	$78.19	+26.3%
Growth Exit 10Y	$69.70 – $405.65	$133.04	+114.9%
EBITDA Exit 5Y	$39.52 – $91.86	$63.58	+2.7%
EBITDA Exit 10Y	$80.27 – $185.31	$125.39	+102.5%
▸ Trading Multiples
P/E	$27.93 – $42.51	$44.58	-28.0%
EV/EBITDA	$22.86 – $44.50	$32.23	-48.0%
EV/Revenue	$32.12 – $46.23	$37.71	-39.1%
▸ PEG
PEG Fair Value	$35.22 – $35.22	$35.22	-43.1%
▸ Earnings Power Value
Earnings Power Value	$24.42 – $55.59	$36.80	-40.6%
▸ Dividend Discount
Dividend Discount	$44.98 – $111.27	$66.19	+6.9%

Valuation History

DCF Analysis

Fair Value

$78.19

Market Price

$61.92

Upside / Downside

+26.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Realty Income Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -1.4% to -11.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 166, DPO 30, DIO 42). At a 7.3% WACC with mid-year discounting, the terminal value (81% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $78.19 per share, suggesting O is undervalued by 26.3% at the current price of $61.92.

FCFF Present Value Calculation

WACC

7.30%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	4,892	5,172	5,552	6,058	5,361	5,495
(−) Net Interest	113	120	129	140	124	127
(+) D&A	61	79	83	94	97	100
EBITDA	5,066	5,371	5,764	6,293	5,582	5,722

(−) Tax	270	285	306	334	296	303
(−) CapEx	110	116	125	136	121	124
(−) ΔWC	1,538	149	201	268	-370	-379
Free Cash Flow (FCFF)	3,148	4,821	5,132	5,554	5,536	5,674

Terminal Value						118,209
WACC / Discount Rate	7.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,039	4,338	4,303	4,340	4,032	83,109

Enterprise Value	103,161
Projection Period	20,052	19.4%
Terminal Value	83,109	80.6%

(−) Current Net Debt	32,418

Equity Value	70,743
(/) Outstanding Shares	905

Fair Price	$78.19

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.3%	$115	$134	$160	$198	$257
6.3%	$83	$94	$108	$127	$152
7.3%	$62	$70	$78	$89	$102
8.3%	$48	$53	$58	$65	$73
9.3%	$37	$40	$44	$49	$55

Current price: $61.92. Green = undervalued, Red = overvalued.

Fair Value

$133.04

Market Price

$61.92

Upside / Downside

+114.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Realty Income Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -1.4% to 7.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 166, DPO 30, DIO 42). At a 7.3% WACC with mid-year discounting, the terminal value (71% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $133.04 per share, suggesting O is undervalued by 114.9% at the current price of $61.92.

FCFF Present Value Calculation

WACC

7.30%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	4,892	5,172	5,552	6,058	5,361	6,680	8,035	9,318	10,403	11,165	11,444
(−) Net Interest	113	120	129	140	124	155	186	216	241	259	265
(+) D&A	61	79	83	94	97	122	130	142	159	179	183
EBITDA	5,066	5,371	5,764	6,293	5,582	6,956	8,351	9,677	10,804	11,603	11,893

(−) Tax	270	285	306	334	296	368	443	514	574	616	631
(−) CapEx	110	116	125	136	121	150	181	209	234	251	257
(−) ΔWC	1,538	149	201	268	-370	699	718	680	575	404	414
Free Cash Flow (FCFF)	3,148	4,821	5,132	5,554	5,536	5,739	7,009	8,274	9,421	10,332	10,591

Terminal Value											220,638
WACC / Discount Rate	7.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,039	4,338	4,303	4,340	4,032	3,895	4,434	4,877	5,176	5,291	109,064

Enterprise Value	152,788
Projection Period	43,725	28.6%
Terminal Value	109,064	71.4%

(−) Current Net Debt	32,418

Equity Value	120,370
(/) Outstanding Shares	905

Fair Price	$133.04

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.3%	$201	$229	$267	$321	$406
6.3%	$147	$163	$182	$208	$242
7.3%	$112	$122	$133	$147	$165
8.3%	$88	$94	$101	$110	$120
9.3%	$70	$74	$79	$84	$91

Current price: $61.92. Green = undervalued, Red = overvalued.

Fair Value

$63.56

Market Price

$61.92

Upside / Downside

+2.7%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Realty Income Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -1.4% to -11.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 166, DPO 30, DIO 42). At a 7.3% WACC with mid-year discounting, the terminal value (78% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 17.4x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $63.58 per share, suggesting O is fairly valued by 2.7% at the current price of $61.92.

FCFF Present Value Calculation

WACC

7.30%

3% – 20%

EV/EBITDA Exit Multiple

17.37x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	4,892	5,172	5,552	6,058	5,361	5,495
(−) Net Interest	113	120	129	140	124	127
(+) D&A	61	79	83	94	97	100
EBITDA	5,066	5,371	5,764	6,293	5,582	5,722

(−) Tax	270	285	306	334	296	—
(−) CapEx	110	116	125	136	121	—
(−) ΔWC	1,538	149	201	268	-370	—
Free Cash Flow (FCF)	3,148	4,821	5,132	5,554	5,536	—

Peers' EBITDA Multiple						17.4x
Terminal Value						99,391
WACC / Discount Rate	7.30%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,039	4,338	4,303	4,340	4,032	69,879

Enterprise Value	89,930
Projection Period	20,052	22.3%
Terminal Value	69,879	77.7%

(−) Current Net Debt	32,418
Equity Value	57,512
(÷) Outstanding Shares	905M
Fair Price	$64	+2.7%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	13.4x	15.4x	17.4x	19.4x	21.4x
5.3%	$53	$63	$72	$82	$92
6.3%	$49	$59	$68	$77	$86
7.3%	$46	$55	$64	$72	$81
8.3%	$43	$51	$60	$68	$77
9.3%	$40	$48	$56	$64	$72

Current price: $61.92. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$125.36

Market Price

$61.92

Upside / Downside

+102.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Realty Income Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -1.4% to 7.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 166, DPO 30, DIO 42). At a 7.3% WACC with mid-year discounting, the terminal value (70% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 17.4x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $125.39 per share, suggesting O is undervalued by 102.5% at the current price of $61.92.

FCFF Present Value Calculation

WACC

7.30%

3% – 20%

EV/EBITDA Exit Multiple

17.37x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	4,892	5,172	5,552	6,058	5,361	6,680	8,035	9,318	10,403	11,165	11,444
(−) Net Interest	113	120	129	140	124	155	186	216	241	259	265
(+) D&A	61	79	83	94	97	122	130	142	159	179	183
EBITDA	5,066	5,371	5,764	6,293	5,582	6,956	8,351	9,677	10,804	11,603	11,893

(−) Tax	270	285	306	334	296	368	443	514	574	616	—
(−) CapEx	110	116	125	136	121	150	181	209	234	251	—
(−) ΔWC	1,538	149	201	268	-370	699	718	680	575	404	—
Free Cash Flow (FCF)	3,148	4,821	5,132	5,554	5,536	5,739	7,009	8,274	9,421	10,332	—

Peers' EBITDA Multiple											17.4x
Terminal Value											206,581
WACC / Discount Rate	7.30%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,039	4,338	4,303	4,340	4,032	3,895	4,434	4,877	5,176	5,291	102,115

Enterprise Value	145,840
Projection Period	43,725	30.0%
Terminal Value	102,115	70.0%

(−) Current Net Debt	32,418
Equity Value	113,421
(÷) Outstanding Shares	905M
Fair Price	$125	+102.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	13.4x	15.4x	17.4x	19.4x	21.4x
5.3%	$123	$138	$154	$170	$185
6.3%	$110	$125	$139	$153	$168
7.3%	$99	$112	$125	$138	$151
8.3%	$89	$101	$113	$125	$137
9.3%	$80	$91	$102	$113	$123

Current price: $61.92. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$44.58

Market Price

$61.92

Upside / Downside

-28.0%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Realty Income Corporation (O) has a fair value of $44.58 based on 7 comparable companies in the REIT - Retail industry.

P/E Valuation — REIT - Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Realty Income CorporationO	56,024	52.9x	37.6x
Simon Property Group, Inc.SPG	65,423	14.2x	29.8x
Kimco Realty CorporationKIM	15,841	28.3x	30.0x
Regency Centers CorporationREG	14,255	27.6x	32.0x
Federal Realty Investment TrustFRT	9,994	24.2x	37.0x
Brixmor Property Group Inc.BRX	9,156	23.9x	28.7x
Agree Realty CorporationADC	9,154	43.1x	38.9x
Tanger Inc.SKT	4,173	36.3x	44.1x
Industry Median		27.6x	32.0x
(*) Profit after tax		1,059	1,490
Equity Value		29,228	51,445
(/) Outstanding shares		905	905
Fair Price		$32	$57

Selected Fair Value (avg of trailing + forward)

$44.58

-28.0%

Fair Value

$32.23

Market Price

$61.92

Upside / Downside

-48.0%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Realty Income Corporation (O) has a fair value of $32.23 based on 9 comparable companies in the REIT - Retail industry.

EV/EBITDA Valuation — REIT - Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Realty Income CorporationO	56,024	24.9x	25.3x
Simon Property Group, Inc.SPG	65,423	11.9x	11.9x
Kimco Realty CorporationKIM	15,841	15.0x	14.6x
Regency Centers CorporationREG	14,255	20.5x	19.0x
Federal Realty Investment TrustFRT	9,994	15.3x	14.5x
Brixmor Property Group Inc.BRX	9,156	14.3x	13.7x
Agree Realty CorporationADC	9,154	20.2x	17.6x
The Macerich CompanyMAC	5,690	26.8x	27.9x
Tanger Inc.SKT	4,173	17.4x	20.1x
Acadia Realty TrustAKR	2,907	22.5x	23.6x
Industry Median		17.4x	17.6x
(*) EBITDA		3,551	3,500
= Enterprise Value		61,694	61,468
(-) Net Debt		32,418	32,418
Equity Value		29,276	29,049
(/) Outstanding shares		905	905
Fair Price		$32	$32

Selected Fair Value (avg of trailing + forward)

$32.23

-48.0%

Fair Value

$37.71

Market Price

$61.92

Upside / Downside

-39.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Realty Income Corporation (O) has a fair value of $37.71 based on 9 comparable companies in the REIT - Retail industry.

EV/Revenue Valuation — REIT - Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Realty Income CorporationO	56,024	15.4x	15.6x
Simon Property Group, Inc.SPG	65,423	14.7x	14.7x
Kimco Realty CorporationKIM	15,841	11.3x	11.0x
Regency Centers CorporationREG	14,255	12.9x	12.0x
Federal Realty Investment TrustFRT	9,994	11.7x	11.0x
Brixmor Property Group Inc.BRX	9,156	10.7x	10.3x
Agree Realty CorporationADC	9,154	17.4x	15.1x
The Macerich CompanyMAC	5,690	10.7x	11.1x
Tanger Inc.SKT	4,173	10.0x	11.7x
Acadia Realty TrustAKR	2,907	11.7x	12.2x
Industry Median		11.7x	11.7x
(*) Revenue		5,749	5,667
= Enterprise Value		67,030	66,045
(-) Net Debt		32,418	32,418
Equity Value		34,611	33,626
(/) Outstanding shares		905	905
Fair Price		$38	$37

Selected Fair Value (avg of trailing + forward)

$37.71

-39.1%

PEG Fair Value

Fair Value

$35.22

Market Price

$61.92

Upside / Downside

-43.1%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 21.4% plus 5.1% dividend yield, the company has a fair value of $35.22 based on NTM EPS (FY2026) of $1.65. The current PEG ratio is 1.76.

PEG Ratio

1.76Pricey

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 37.6 ÷ (16.3% + 5.1%) = 1.76

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	16.3%
Dividend Yield	+5.1%
Adjusted Growth (clamped 8–25%)	21.4%
Fair P/E	21.4x
NTM EPS (FY2026)	$1.65
Fair Value	$35.22

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$1.17	—	—
FY2026E	$1.65	+40.7%	4
FY2027E	$1.79	+8.7%	6
FY2028E	$1.84	+2.9%	3

3Y Forward EPS CAGR: 16.3%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$359.5M	$0.87	—
FY2022	$869.4M	$1.42	+63.2%
FY2023	$872.3M	$1.26	-11.3%
FY2024	$860.8M	$0.98	-22.2%
FY2025	$1.1B	$1.17	+19.4%

4Y Historical EPS CAGR: 7.7%

Earnings Power Value

Fair Value

$36.80

Market Price

$61.92

Upside / Downside

-40.6%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.3% and normalized earnings of $4.8B, the company has a fair value of $36.80 per share. The EPV range is $24.42 – $55.59 based on WACC sensitivity (5.8% – 8.8%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	4,798	4,798	4,798
(/) WACC	8.8%	7.3%	5.8%
Enterprise Value	54,517	65,718	82,714
(-) Net debt	32,418	32,418	32,418
Equity Value	22,098	33,300	50,296
(/) Outstanding shares	905	905	905
Fair Price	$24.42	$36.80	$55.59

Dividend Discount Model

Fair Value

$66.19

Market Price

$61.92

Upside / Downside

+6.9%

Verdict

Undervalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.3% and projected dividend growth of 5.8%, the fair value is $66.19 per share. The DDM range is $44.98 – $111.27 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$3.23

Dividend Yield

5.06%

Payout Ratio

275.9%

Dividend Coverage

0.36x

FCF Payout Ratio73.1%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$3.23	275.9%	—
2024	—	0.0%	—
2023	—	0.0%	—
2022	—	0.0%	—
2021	—	0.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$3.41	5.8%	0.9237	$3.15
2027	$3.61	5.8%	0.8532	$3.08
2028	$3.82	5.8%	0.7881	$3.01
2029	$4.04	5.8%	0.7280	$2.94
2030	$4.27	5.8%	0.6725	$2.87
Terminal Value	$4.38 DPS	2.5%		$51.13

PV of Projected Dividends$15.06

PV of Terminal Value$51.13

Fair Value per Share$66.19

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	3.8%	4.8%	5.8%	6.8%	7.8%
6.3%	$93	$97	$102	$107	$111
7.3%	$74	$77	$80	$84	$88
8.3%	$61	$63	$66	$69	$72
9.3%	$52	$54	$56	$59	$61
10.3%	$45	$47	$49	$51	$53

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.