O Valuation

Realty Income Corp

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57.980

+0.07(0.121%)1D

O Relative Valuation

O's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, O is overvalued; if below, it's undervalued.

Historical Valuation

Realty Income Corp (O) is now in the Fair zone, suggesting that its current forward PE ratio of 40.84 is considered Fairly compared with the five-year average of 42.68. The fair price of Realty Income Corp (O) is between 53.01 to 64.71 according to relative valuation methord.

Relative Value

Fair Zone

53.01-64.71

Current Price：57.98

Fair

40.84

Trailing

Forward

15.33

EV/EBITDA

Realty Income Corp. (O) has a current EV/EBITDA of 15.33. The 5-year average EV/EBITDA is 16.19. The thresholds are as follows: Strongly Undervalued below 12.52, Undervalued between 12.52 and 14.36, Fairly Valued between 18.02 and 14.36, Overvalued between 18.02 and 19.85, and Strongly Overvalued above 19.85. The current Forward EV/EBITDA of 15.33 falls within the Historic Trend Line -Fairly Valued range.

30.34

EV/EBIT

Realty Income Corp. (O) has a current EV/EBIT of 30.34. The 5-year average EV/EBIT is 31.91. The thresholds are as follows: Strongly Undervalued below 23.90, Undervalued between 23.90 and 27.90, Fairly Valued between 35.91 and 27.90, Overvalued between 35.91 and 39.91, and Strongly Overvalued above 39.91. The current Forward EV/EBIT of 30.34 falls within the Historic Trend Line -Fairly Valued range.

57.98

Realty Income Corp. (O) has a current PS of 57.98. The 5-year average PS is 11.00. The thresholds are as follows: Strongly Undervalued below 4.75, Undervalued between 4.75 and 7.87, Fairly Valued between 14.12 and 7.87, Overvalued between 14.12 and 17.24, and Strongly Overvalued above 17.24. The current Forward PS of 57.98 falls within the Strongly Overvalued range.

13.41

P/OCF

Realty Income Corp. (O) has a current P/OCF of 13.41. The 5-year average P/OCF is 13.34. The thresholds are as follows: Strongly Undervalued below 5.97, Undervalued between 5.97 and 9.66, Fairly Valued between 17.03 and 9.66, Overvalued between 17.03 and 20.71, and Strongly Overvalued above 20.71. The current Forward P/OCF of 13.41 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Realty Income Corp. (O) has a current P/FCF of 0.00. The 5-year average P/FCF is 10.55. The thresholds are as follows: Strongly Undervalued below -2.51, Undervalued between -2.51 and 4.02, Fairly Valued between 17.09 and 4.02, Overvalued between 17.09 and 23.62, and Strongly Overvalued above 23.62. The current Forward P/FCF of 0.00 falls within the Undervalued range.

Realty Income Corp (O) has a current Price-to-Book (P/B) ratio of 1.35. Compared to its 3-year average P/B ratio of 1.32 , the current P/B ratio is approximately 2.27% higher. Relative to its 5-year average P/B ratio of 1.56, the current P/B ratio is about -13.06% higher. Realty Income Corp (O) has a Forward Free Cash Flow (FCF) yield of approximately 6.91%. Compared to its 3-year average FCF yield of 6.52%, the current FCF yield is approximately 5.89% lower. Relative to its 5-year average FCF yield of 5.65% , the current FCF yield is about 22.22% lower.

1.35

P/B

Median3y

1.32

Median5y

1.56

6.91

FCF Yield

Median3y

6.52

Median5y

5.65

Competitors Valuation Multiple

The average P/S ratio for O's competitors is 147.21, providing a benchmark for relative valuation. Realty Income Corp Corp (O) exhibits a P/S ratio of 57.98, which is -60.61% above the industry average. Given its robust revenue growth of 5.30%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Simon Property Group Inc

Extra Space Storage Inc

133.54

4.08%

28.34B

Performance Decomposition

Market capitalization of O increased by 0.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 46.17 to 56.52.

The secondary factor is the Revenue Growth, contributed 5.30%to the performance.

Overall, the performance of O in the past 1 year is driven by P/E Change. Which is more unsustainable.

5.30%

1.34B → 1.41B

Revenue Growth

-27.57%

19.48 → 14.11

Margin Expansion

22.43%

46.17 → 56.52

P/E Change

0.16%