What is Realty Income Corporation (O) DCF Fair Value and Intrinsic Value in 2026?

Realty Income Corporation (O) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Realty Income Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

Realty Income Corporation operates in the Real Estate sector (REIT - Retail) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Realty Income Corporation's financial health rating and Piotroski F-Score?

Realty Income Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Realty Income Corporation (O) for quarterly SEC filing thesis breaks?

LocalAlpha audits Realty Income Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksO

O

Realty Income CorporationReal Estate / REIT - RetailINTACT

Realty Income Corporation, an S&P 500 company, is real estate partner to the world's leading companies. Founded in 1969, they serve their clients as a full-service real estate capital provider. As of June 30, 2026, they have a portfolio of over 15,500 properties in all 50 U.S. states, the U.K., and eight other countries in Europe. They are known as (The Monthly Dividend Company) and have a mission to invest in people and places to deliver dependable monthly dividends that increase over time. Since their founding, they have declared 676 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats index for having increased dividend for over 31 consecutive years. Realty Income Corporation was founded in 1969 and was incorporated in Maryland.

Share Price

$57.16

52W: $53.15 - $67.94

DCF Fair Value

$20.88

-173.8% Premium

Thesis Hub

P/E (TTM)

41.1x

ROIC

35.3%

Operating Margin

47%

FCF Yield

2.9%

Debt / Equity

0.75x

Piotroski Score

7/9

Altman Z-Score

2.02

Market Cap

$54.1B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($20.88)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$20.88

MOS Buy Target (-25%)

$15.66

Valuation Overlays: DCF Fair Value ($20.88) 25% MOS Buy Target ($15.66) Revised Graham ($49.06) Graham Number ($36.16)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$57.16

DCF Fair Value

$20.96

-172.8% Premium

Starting Free Cash Flow ($M)$1,582M

$100M$1,582M (Reported)$50,000M

Stage 1 Growth (Years 1-5)18.0%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$30,700M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$20.5B

PV of Terminal Value

$30.0B

Implied Enterprise Value

$50.5B

Implied Equity Value

$19.8B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,867	$2,203	$2,599	$3,067	$3,619	$3,782	$3,952	$4,130	$4,316	$4,510
Present Value (PV)	$1,713	$1,854	$2,007	$2,173	$2,352	$2,255	$2,162	$2,073	$1,987	$1,905

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-58.1% Premium

$36.16

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $1.39BVPS: $41.80

Revised Graham Formula-16.5% Premium

$49.06

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings2.8% Yield

$1.59 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.5BYield: 2.8%

Reverse DCF: Market Growth Expectation

FAIR BARRIER

12.7% CAGR (Next 10 Yrs)

At the current price of $57.16, the market is assuming the business will compound Free Cash Flow at 12.7% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil O with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Realty Income Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 47% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Realty Income Corporation (O) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Realty Income Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Realty Income Corporation has an estimated DCF intrinsic fair value of $20.88 per share compared to its current market price of $57.16. This represents an estimated 173.8% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $36.16.