Discounted Cash Flow (DCF) Analysis Levered

Realty Income Corporation (O)

$61.27

-0.70 (-1.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 285.52 | 61.27 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,327.84	1,491.59	1,651.63	2,080.46	3,343.68	4,261.05	5,430.12	6,919.93	8,818.48	11,237.92
Revenue (%)
Operating Cash Flow	940.74	1,068.94	1,115.54	1,322.19	2,563.86	2,985.16	3,804.17	4,847.88	6,177.95	7,872.93
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	2,985.16	3,804.17	4,847.88	6,177.95	7,872.93

Weighted Average Cost Of Capital

Share price	$ 61.27
Beta	0.795
Diluted Shares Outstanding	612.18
Cost of Debt
Tax Rate	5.25
After-tax Cost of Debt	2.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.359
Total Debt	19,979.73
Total Equity	37,508.30
Total Capital	57,488.03
Debt Weighting	34.75
Equity Weighting	65.25
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,327.84	1,491.59	1,651.63	2,080.46	3,343.68	4,261.05	5,430.12	6,919.93	8,818.48	11,237.92
Operating Cash Flow	940.74	1,068.94	1,115.54	1,322.19	2,563.86	2,985.16	3,804.17	4,847.88	6,177.95	7,872.93
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	2,985.16	3,804.17	4,847.88	6,177.95	7,872.93
WACC
PV LFCF						2,160.06	2,608.20	3,149.31	3,802.69	4,591.62
SUM PV LFCF										21,359.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.54
Free cash flow (t + 1)	8,030.39
Terminal Value	226,847.26
Present Value of Terminal Value	173,239.97

Intrinsic Value

Enterprise Value	194,599.37
Net Debt	19,808.63
Equity Value	174,790.74
Shares Outstanding	612.18
Equity Value Per Share	285.52