NNN REIT Inc (NNN) 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 -24% for NNN.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.7% (average of 3 methods) values the shares at $33.43; the price of $41.60 is 24% above that value, and 81% of that value comes from beyond year five.
Leak Score 0/100 on 2 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 | NNN | O |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $41.60 | $56.53 |
| Intrinsic value | $33.43 | $123.83 |
| Margin of safety | -24% | +54% |
| Leak Score | 0/100 (2/12) | 60/100 (7/12) |
| Market cap | $8.0B | $53.5B |
| Revenue growth, 5 years | 7.0% | 27.8% |
| Operating margin | 61.4% | 45.6% |
| Net margin | 40.3% | 20.9% |
| Return on equity | 8.7% | 3.2% |
| Debt to equity | 1.12 | 0.83 |
| P/E | 20.5x | 41.4x |
| Forward P/E | 19.7x | 33.5x |
| P/B | 1.8x | 1.4x |
| Dividend yield | 5.9% | 5.8% |