Is Realty Income (O) Pricing Reflecting Its Strong Recent Share Price Performance

Simply Wall St.

Feb 12

If you are wondering whether Realty Income is fairly priced at around US$64.50, you are in the right place to size up what you might be paying for each dollar of its cash flow and assets. The stock ...

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The stock ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/real-estate/nyse-o/realty-income/news/is-realty-income-o-pricing-reflecting-its-strong-recent-shar\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Realty Income (O) Pricing Reflecting Its Strong Recent Share Price Performance</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Realty Income (O) Pricing Reflecting Its Strong Recent Share Price Performance\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-12 23:37 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/real-estate/nyse-o/realty-income/news/is-realty-income-o-pricing-reflecting-its-strong-recent-shar><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Realty Income is fairly priced at around US$64.50, you are in the right place to size up what you might be paying for each dollar of its cash flow and assets. The stock ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/real-estate/nyse-o/realty-income/news/is-realty-income-o-pricing-reflecting-its-strong-recent-shar\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4231","symbol_name":"零售房地产信托","start_time":0,"source_url":"https://simplywall.st/stocks/us/real-estate/nyse-o/realty-income/news/is-realty-income-o-pricing-reflecting-its-strong-recent-shar","article_id":"2611756959","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/339305-main-header/1756255618638"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/real-estate/nyse-o/realty-income/news/is-realty-income-o-pricing-reflecting-its-strong-recent-shar","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2611756959","pubTimestamp":1770910663,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Realty Income is fairly priced at around US$64.50, you are in the right place to size up what you might be paying for each dollar of its cash flow and assets.\nThe stock has returned 3.3% over the last 7 days, 9.5% over 30 days, 12.5% year to date, 26.1% over 1 year, 14.7% over 3 years, and 38.8% over 5 years, which gives useful context before you weigh up what the current share price actually offers.\nRecent coverage has focused on Realty Income's role as a large...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4231":"零售房地产信托","BK4080":"零售业房地产投资信托","BK4588":"碎股","BK4585":"ETF&股票定投概念","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","O":"Realty Income Corp"},"translate_title":"Realty Income(O)定价是否反映其近期强劲的股价表现","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"O":1.5,"DCF":1},"content_text":"If you are wondering whether Realty Income is fairly priced at around US$64.50, you are in the right place to size up what you might be paying for each dollar of its cash flow and assets. The stock has returned 3.3% over the last 7 days, 9.5% over 30 days, 12.5% year to date, 26.1% over 1 year, 14.7% over 3 years, and 38.8% over 5 years, which gives useful context before you weigh up what the current share price actually offers. Recent coverage has focused on Realty Income's role as a large US-listed real estate investment trust and its position in income focused portfolios, which helps frame how investors think about both its reliability and its risks. That context is important when you compare the recent share price performance with how the underlying business is being valued by the market today. On Simply Wall St's 6 point valuation checklist, Realty Income scores 2 out of 6, so we will look at how different methods such as multiples and discounted cash flow compare, and then finish with a way to tie those numbers into a bigger picture of value.  Realty Income scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Realty Income Discounted Cash Flow (DCF) Analysis The DCF model estimates what Realty Income shares could be worth by projecting its adjusted funds from operations into the future and discounting those cash flows back to today. On this 2 stage Free Cash Flow to Equity model, Realty Income is shown generating trailing twelve month free cash flow of about $3.62b. Analysts and extrapolated estimates point to free cash flow of $4.88b in 2030, with a series of annual projections between 2026 and 2035 that Simply Wall St discounts to today using its own assumptions. Adding up those discounted cash flows produces an estimated intrinsic value of about $99.76 per share. Against a current share price around $64.50, the model suggests a 35.3% discount, which implies the stock is undervalued on this set of cash flow assumptions. DCF models are sensitive to the inputs. Based on these numbers, the current share price reflects a materially lower value than this particular estimate of Realty Income's cash flow. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Realty Income is undervalued by 35.3%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks. O Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Realty Income. Approach 2: Realty Income Price vs Earnings For a profitable company, the P/E ratio is a straightforward way to gauge what investors are paying for each dollar of current earnings, which makes it a practical cross check beside a DCF model. What counts as a reasonable P/E often reflects how the market views a company’s growth potential and risk profile. Higher expected growth or lower perceived risk can support a higher multiple, while slower growth or higher risk usually calls for a lower one. Realty Income currently trades on a P/E of 61.67x, compared with an average of 27.33x for the Retail REITs industry and a peer group average of 28.52x. Simply Wall St’s Fair Ratio framework estimates a P/E of 35.95x for Realty Income, based on factors such as its earnings profile, margins, industry, market value and specific risk characteristics. This Fair Ratio is designed to be more tailored than a simple peer or industry comparison because it adjusts for company specific traits rather than assuming one size fits all. When you set the current 61.67x P/E against the 35.95x Fair Ratio, Realty Income screens as trading above what that framework suggests as a more typical level. Result: OVERVALUED NYSE:O P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies. Upgrade Your Decision Making: Choose your Realty Income Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your story about a company linked to your own numbers for future revenue, earnings, margins and a fair value that you can then compare to the current price. On Simply Wall St’s Community page, Narratives let you connect a plain English view of Realty Income to a financial forecast and a fair value in one place, so you can quickly see whether your view suggests the shares are priced attractively, fully priced or expensive right now. These Narratives update automatically when new information such as news or earnings is added to the platform. This helps keep your fair value in sync with what is actually happening rather than frozen at the moment you first ran the numbers. For example, one Realty Income Narrative on Simply Wall St currently places fair value at about US$61.26 while another has it closer to US$64.31. This shows how two investors using the same company can reach different conclusions based on their own assumptions and then decide for themselves whether the current price aligns with their view. Do you think there's more to the story for Realty Income? Head over to our Community to see what others are saying! NYSE:O 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}