Discounted Cash Flow (DCF) Analysis Levered

Realty Income Corporation (O)

$61

+0.99 (+1.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 312.31 | 61 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,491.59	1,651.63	2,080.46	3,343.68	4,429.39	5,867.65	7,772.91	10,296.81	13,640.25	18,069.32
Revenue (%)
Operating Cash Flow	1,068.94	1,115.54	1,322.19	2,563.86	3,094.34	4,099.09	5,430.09	7,193.27	9,528.97	12,623.08
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	3,094.34	4,099.09	5,430.09	7,193.27	9,528.97	12,623.08

Weighted Average Cost Of Capital

Share price	$ 61
Beta	0.803
Diluted Shares Outstanding	612.18
Cost of Debt
Tax Rate	5.25
After-tax Cost of Debt	4.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.564
Total Debt	-
Total Equity	37,343.01
Total Capital	37,343.01
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,491.59	1,651.63	2,080.46	3,343.68	4,429.39	5,867.65	7,772.91	10,296.81	13,640.25	18,069.32
Operating Cash Flow	1,068.94	1,115.54	1,322.19	2,563.86	3,094.34	4,099.09	5,430.09	7,193.27	9,528.97	12,623.08
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	3,094.34	4,099.09	5,430.09	7,193.27	9,528.97	12,623.08
WACC
PV LFCF					2,674.64	3,294.09	4,056.99	4,996.57	6,153.77	7,578.96
SUM PV LFCF										30,172.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.56
Free cash flow (t + 1)	12,875.54
Terminal Value	231,574.46
Present Value of Terminal Value	160,855.79

Intrinsic Value

Enterprise Value	191,028.58
Net Debt	-164.58
Equity Value	191,193.15
Shares Outstanding	612.18
Equity Value Per Share	312.31