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Friday 6 November 2026 Export O’s income statement to Excel — free account

Realty Income Corporation

O Real Estate Reit Retail

Realty Income Corporation’s revenue for fiscal 2025 (year ended December 2025) was $5.7 billion, up 9.07% from fiscal 2024.

Revenue
+10.3%
EPS
+30.7%
Free cash flow
−344.0%
Total debt
+10.6%

Quarter to September 2026, against a year earlier

59.27 0.23 −0.39%
Market cap
$56.6B
P/E
40.2×
Fwd P/E
37.8×
Dividend yield
5.47%
F-score
5/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
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Realty Income Corporation (O) valuation and DCF model

What the price implies · reverse DCF

At $59.27 the price implies FFO a share growing 0.6% a year for ten years.

FFO a share grew 4.4% a year over the last ten years, 5.2% over the last five. The price asks for less than its ten-year rate. The industry’s median company is priced for 1.5%.

In December 2017 the price assumed 4.7% a year; Realty Income Corporation went on to grow FFO a share 5.3% a year to FY2025.

FFO a share is worked out from Realty Income Corporation’s 10-Ks and 10-Qs: net income, plus the depreciation of its property and impairments, less gains on property sales. It reported AFFO of $1.09 a share for Q2 2026.

Price implies
0.6%
Last 5 years, reported
5.2%
Last 10 years, reported
4.4%
Industry median implies
1.5%

The headline discounts the last twelve months’ FFO a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
0.6% a year for ten years
$59.27
today’s price
Its base case
4.4% a year for five years, then 2.7%
$74.55
25.8% above today’s price

Both are growth in FFO a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Realty Income Corporation’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · FFO a share
the four quarters to June 2026, from the 10-Q and 10-K filings

Yearly growth in FFO a share. It usually slows as the company matures.

Today’s price implies FFO a share growing 0.6% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against Realty Income Corporation’s own cost of capital: risk-free 4.3% + beta 0.65 × equity premium 4.5% = 7.2% cost of equity; weighted, 7.2%.

Use 7.2%
Base case value per share $74.55 ten years discounted, and what follows
Current price $59.27 market price per share
Above today’s price 25.8% upside at the base case’s assumptions

How we got there$33.73 10 years of FFO+$40.83 terminal value=$74.55 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Reit Retail).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 40.19× 46.68× 51.37× 22% below 24.06× 67% above
P/FCF — 59.18× 59.18× — 17.80× —
P/B 1.32× 1.27× 1.60× 18% below 1.77× 26% below
EV/EBITDA 20.87× 22.03× 25.69× 19% below 15.96× 31% above
EV/Sales 13.22× 14.46× 16.80× 21% below 10.99× 20% above
P/FFO 13.68× 13.99× 17.39× 21% below — —
P/E P/B EV/EBITDA EV/Sales P/FFO
13.47×16.09×18.71×21.33×10Y avg 16.80×2017201820192020202120222023202420252026

O trades at 13.22× EV/Sales, against a 10-year average of 16.80× (range 13.22×–21.56×). That is cheaper than 100% of the last 9 year-end readings; re-rating to the average implies $82.86 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.