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 1,327.841,491.591,651.632,080.463,343.684,261.055,430.126,919.938,818.4811,237.92
Revenue (%)
Operating Cash Flow 940.741,068.941,115.541,322.192,563.862,985.163,804.174,847.886,177.957,872.93
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----2,985.163,804.174,847.886,177.957,872.93

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 1,327.841,491.591,651.632,080.463,343.684,261.055,430.126,919.938,818.4811,237.92
Operating Cash Flow 940.741,068.941,115.541,322.192,563.862,985.163,804.174,847.886,177.957,872.93
Capital Expenditure ----------
Free Cash Flow -----2,985.163,804.174,847.886,177.957,872.93
WACC
PV LFCF 2,160.062,608.203,149.313,802.694,591.62
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