Discounted Cash Flow (DCF) Analysis Unlevered

Realty Income Corporation (O)

$61.81

-0.69 (-1.10%)
All numbers are in Millions, Currency in USD
Stock DCF: 260.09 | 61.81 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,215.771,327.841,491.591,651.632,080.462,383.402,730.453,128.033,583.504,105.29
Revenue (%)
EBITDA 1,060.181,1661,311.551,377.911,608.042,019.522,313.592,650.473,036.403,478.53
EBITDA (%)
EBIT 561.39626.22717.59700.88710.201,039.251,190.571,363.931,562.541,790.06
EBIT (%)
Depreciation 498.79539.78593.96677.04897.83980.271,123.011,286.531,473.861,688.47
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 6.9010.3954.01824.4836,167.518,548.429,793.1611,219.1412,852.7614,724.25
Total Cash (%)
Account Receivables 128.72144.99273.54418.12755.14483.63554.05634.73727.15833.03
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 109.52133.77177.04241.34351.13297.64340.98390.63447.51512.68
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 61.81
Beta 0.731
Diluted Shares Outstanding 346.92
Cost of Debt
Tax Rate 8.40
After-tax Cost of Debt 1.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.146
Total Debt 16,060.47
Total Equity 21,442.97
Total Capital 37,503.45
Debt Weighting 42.82
Equity Weighting 57.18
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,215.771,327.841,491.591,651.632,080.462,383.402,730.453,128.033,583.504,105.29
EBITDA 1,060.181,1661,311.551,377.911,608.042,019.522,313.592,650.473,036.403,478.53
EBIT 561.39626.22717.59700.88710.201,039.251,190.571,363.931,562.541,790.06
Tax Rate 2.02%1.71%1.61%3.82%8.40%3.51%3.51%3.51%3.51%3.51%
EBIAT 550.06615.52706.02674.09650.571,002.761,148.771,316.041,507.671,727.20
Depreciation 498.79539.78593.96677.04897.83980.271,123.011,286.531,473.861,688.47
Accounts Receivable --16.27-128.55-144.58-337.02271.51-70.42-80.68-92.42-105.88
Inventories ----------
Accounts Payable -24.2443.2764.30109.79-53.4843.3449.6556.8865.16
Capital Expenditure ----------
UFCF -----2,201.062,244.702,571.552,945.993,374.96
WACC
PV UFCF 2,098.842,041.062,229.672,435.712,660.80
SUM PV UFCF 11,466.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.87
Free cash flow (t + 1) 3,442.46
Terminal Value 119,946.20
Present Value of Terminal Value 94,564.94

Intrinsic Value

Enterprise Value 106,031.03
Net Debt 15,801.89
Equity Value 90,229.13
Shares Outstanding 346.92
Equity Value Per Share 260.09