Federal Realty Investment Trust (FRT) is overvalued and Realty Income Corp (O) is undervalued.
Against our estimates of intrinsic value, O trades at the wider discount: a margin of safety of +54%, against -84% for FRT.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $59.98; the price of $110.46 is 84% above that value, and 79% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 8.8% (average of 3 methods) values the shares at $123.83; the price of $56.53 is 54% below that value, and 78% of that value comes from beyond year five.
Leak Score 60/100 on 7 of 12 signals
| Metric | FRT | O |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $110.46 | $56.53 |
| Intrinsic value | $59.98 | $123.83 |
| Margin of safety | -84% | +54% |
| Leak Score | 14/100 (3/12) | 60/100 (7/12) |
| Market cap | $9.7B | $53.5B |
| Revenue growth, 5 years | 9.6% | 27.8% |
| Operating margin | 34.5% | 45.6% |
| Net margin | 31.9% | 20.9% |
| Return on equity | 13.1% | 3.2% |
| Debt to equity | 1.44 | 0.83 |
| P/E | 22.3x | 41.4x |
| Forward P/E | 34.2x | 33.5x |
| P/B | 3.0x | 1.4x |
| Dividend yield | 4.1% | 5.8% |