AlphaMadera's AlphaVal page computes Realty Income Corporation's fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag O as undervalued, fairly valued, or overvalued.

What is Realty Income Corporation's fair value?

Fair value for O is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value O?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from O's most recent reported fundamentals.

O - Realty Income Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $67.97 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Real Estate Investment Trust 85% confidence

Primary model: P/FFO × Retail REIT Multiple

Valuation Signal Overvalued Mild

Trading 5.8% above fair value

Current Price $63.31

Bear Case $48.13 24.0% downside ($48.13 - $63.31) / $63.31 = -24.0% $3.79 FFO × 16x

Fair Value $59.85 5.5% downside ($59.85 - $63.31) / $63.31 = -5.5% $3.79 FFO × 20x

Bull Case $71.57 13.0% upside ($71.57 - $63.31) / $63.31 = 13.0% $3.79 FFO × 23x

Adjust Assumptions

P/FFO Multiple

19.5x

FFO per Share

3.79$

Key Value Driver

FFO/share ($3.79) × retail P/FFO multiple

Implied Market Multiple 16.7x

Plain-Language Summary

Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $67.97 from 34 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $59.85 per share.

Warnings

⚠ Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.

ℹ The 1.7% yield is low for a real estate company — investors are paying up because they expect above-average growth.

ℹ Dividend-based valuation: $15.63 (72% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.

Key Risks

P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
Interest rate sensitivity: REIT multiples compress when rates rise
FFO approximation (NI + D&A) may include gains on property sales — verify