Using the industry peer median P/E multiple (trailing + forward), Realty Income Corporation (O) has a fair value of $38.15 based on 4 comparable companies in the REIT - Retail industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Realty Income CorporationO | 54,731 | 51.7x | 37.0x |
| Simon Property Group, Inc.SPG | 59,029 | 12.8x | 27.0x |
| Kimco Realty CorporationKIM | 15,145 | 26.9x | 28.4x |
| Regency Centers CorporationREG | 13,627 | 26.4x | 30.6x |
| Federal Realty Investment TrustFRT | 8,977 | 21.7x | 36.0x |
| Industry Median | 24.1x | 29.5x | |
| (*) Profit after tax | 1,059 | 1,478 | |
| Equity Value | 25,481 | 43,559 | |
| (/) Outstanding shares | 905 | 905 | |
| Fair Price | $28 | $48 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.