Realty Income Corporation (O) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+4.4%

$59.88

vs $57.35 price

Levered DCF

$65.05

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.9

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	48.18×	54.5×	45.57×	44.67×	82.29×	52.35×	51.67×	48.45×
P/B	1.29×	1.2×	1.21×	1.35×	1.18×	1.88×	2.3×	2.18×
P/S	8.87×	8.85×	9.75×	11.61×	14.26×	12.57×	15.13×	13.31×
EV / EBITDA	23.15×	16.86×	17.07×	22.12×	35.16×	20.85×	23.19×	20.71×
Gross margin	89.8%	92.8%	92.2%	93.2%	93.6%	93.6%	94.0%	95.0%
Operating margin	28.3%	44.0%	42.2%	39.1%	45.8%	48.1%	49.7%	48.0%
Net margin	18.4%	16.3%	21.4%	26.0%	17.3%	24.0%	29.3%	27.4%
Current ratio	0.51×	1.68×	1.53×	0.51×	0.52×	3.37×	0.43×	0.33×
Debt / equity	0.83×	0.69×	0.67×	0.65×	0.64×	0.81×	0.82×	0.8×
Interest coverage	1.42×	2.27×	2.33×	2.82×	2.97×	2.6×	0×	0×
Dividend yield	5.7%	5.8%	5.3%	4.7%	3.9%	4.7%	3.8%	4.3%
Payout ratio	275.9%	313.6%	242.1%	208.6%	325.2%	243.8%	195.2%	209.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	2.7%	2.2%	2.6%	3.0%	1.4%	3.6%	4.5%	4.5%
Return on invested capital	24.5%	3.2%	2.9%	2.5%	2.1%	3.8%	4.0%	4.2%
Return on assets	1.5%	1.3%	1.5%	1.8%	0.8%	1.9%	2.4%	2.4%
Free cash flow yield	7.8%	7.4%	7.3%	6.4%	4.4%	5.3%	4.6%	5.2%
Earnings yield	2.1%	1.8%	2.2%	2.2%	1.2%	1.9%	1.9%	2.1%
Enterprise value	$83.4B	$72.9B	$61.5B	$57.2B	$45.4B	$28.8B	$30.5B	$24.2B
Net debt / EBITDA	9×	6.08×	6.04×	7.12×	12.16×	5.87×	6.07×	5.57×
Cash conversion cycle (days)	67	234	268	211	132	92	67	40