O Realty Income
too hard · 48
Owner-earnings value$73.70
Price$57.06
Margin of safety
+29.2%
Quality gate · 48/100
⚠ sub-hurdle returns (median roic 3% < 9%) · over-levered (net debt/EBITDA 5.7x > 4x)
Median ROIC2.8%
Gross margin92.6%
Net debt / EBITDA5.7x
FCF conversion358%
Share count / yr+12.2%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 4.17B |
| Owner-earnings yield | 7.7% |
| Free-cash-flow yield | 7.7% |
| Growth used (normalized) | 2.4% |
| Market-implied growth (reverse DCF) | -3.6% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.0% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 4.27B | 2.4% | 3.91B |
| 2 | 4.37B | 2.5% | 3.68B |
| 3 | 4.48B | 2.5% | 3.46B |
| 4 | 4.60B | 2.6% | 3.26B |
| 5 | 4.72B | 2.7% | 3.07B |
| 6 | 4.85B | 2.7% | 2.89B |
| 7 | 4.99B | 2.8% | 2.73B |
| 8 | 5.13B | 2.9% | 2.57B |
| 9 | 5.28B | 2.9% | 2.43B |
| 10 | 5.44B | 3.0% | 2.30B |
⚠ owner earnings approximated by free cash flow · Price pays for ~-4%/yr owner-earnings growth over 10y (reverse DCF); model credits 2%. Capped at market + 6pts.