Realty Income - Comparative Multiple Analysis

Realty Income (Comparative Multiple Analysis)

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Improve your investment analysis with by seeing the Realty Income's Discounted Cash Flow analysis, Realty Income's Warren Buffet analysis, and Realty Income's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of Realty Income

WikiWealth compares Realty Income's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Realty Income's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Realty Income.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Realty Income's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Realty Income's Analysis


How does this work? The Comparative Investment Analysis determines the value of Realty Income by comparing Realty Income financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Realty Income.

See the Realty Income cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Realty Income.

Also, see the Realty Income's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Realty Income's valuation conclusion for a quick summary.