Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 11.12%, higher than industry average of 8.28%.

Growth Trajectory

Profitability

In the growth phase company makes 72.68% profit on every dollar of sales, higher than industry average of 50.01%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.81% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
55.59B USD
Equity Value
27.31B USD
FCF Yield
27.39%
Average ROIC
6.65%
Cost of Capital
6.91%
P/E Ratio
22.89x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues5.46B USD5.27B USD
Operating Income or EBIT2.55B USD2.45B USD
Interest Expense1.06B USD998.10M USD
Book Value Of Equity39.15B USD38.84B USD
Book Value Of Debt28.87B USD26.76B USD
Cash and Marketable Securities800.45M USD444.96M USD
Number of Shares Outstanding914.28M--
Minority interests210.95M USD0 USD
Current Stock Price59.49 USD--
Effective Tax Rate7.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-4.66%
3.62%Company
vs
8.28%Industry
Below Industry
Operating Margin
-3.24%
46.76%Company
vs
50.01%Industry
At Industry Level
Realty Income Corporation performs in line with industry averages, showing balanced competitive positioning within its sector.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 91% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 50.78B USD Add
Present Value (Cash Flow Over Next 10 Years) 4.81B USD Add
Value of Operating Assets 55.59B USD Sub-total
Debt 28.87B USD Subtract
Minority Interests 210.94M USD Subtract
Cash 800.44M USD Add
Value of Equity 27.31B USD Sub-total
Number of Shares 914.28M shares Divisor
Estimated Value per Share (Fair Value) 29.87 USD Total
Current Market Price 59.49 USD Reference

Financial Projections

Total FCF Present Value
4.81B USD
Avg Revenue Growth
7.36%
Avg Operating Margin
78.43%
Avg ROIC
6.65%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue5.64B USD6.26B USD6.96B USD7.73B USD8.59B USD9.44B USD10.24B USD10.98B USD11.63B USD12.16B USD12.72B USD
Growth Rate 3.28% 11.11% 11.11% 11.11% 11.11% 9.81% 8.51% 7.20% 5.90% 4.59% 4.59%
PROFITABILITY
Operating Income2.63B USD4.01B USD5.06B USD6.29B USD7.73B USD8.49B USD9.21B USD9.88B USD10.46B USD10.94B USD11.45B USD
Operating Margin 46.76% 64.03% 72.67% 81.31% 89.94% 89.94% 89.94% 89.94% 89.94% 89.94% 89.94%
EBIT (1-tax)2.45B USD3.73B USD4.70B USD5.85B USD7.19B USD7.59B USD7.90B USD8.12B USD8.22B USD8.20B USD8.58B USD
CASH FLOW
Reinvestment4.78B USD5.31B USD5.90B USD6.56B USD6.43B USD5.92B USD5.44B USD4.77B USD3.94B USD4.12B USD4.47B USD
Free Cash Flow-2.34B USD-1.59B USD-1.20B USD-711.06M USD755.72M USD1.67B USD2.46B USD3.34B USD4.28B USD4.08B USD4.11B USD
Terminal Value--------------------97.25B USD
Present Value-2.21B USD-1.42B USD-1.02B USD-567.18M USD569.68M USD1.18B USD1.63B USD2.05B USD2.43B USD2.13B USD—
EFFICIENCY
ROIC 3.64% 5.18% 6.08% 7.03% 8.01% 7.89% 7.74% 7.54% 7.31% 7.05% 8.83%
Cost of Capital 5.81% 5.81% 5.81% 5.81% 5.81% 6.41% 7.02% 7.62% 8.22% 8.83% 8.83%
Sales/Capital 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)