Is Realty Income Corp. overvalued or undervalued?

As of 22 May 2025, Realty Income Corp. has moved from a fair to a very attractive valuation grade. The company is currently considered undervalued. Key ratios include a P/E ratio of 36, an EV to EBITDA of 10.36, and a PEG ratio of 1.12, which suggest that the stock is trading at a reasonable price relative to its earnings growth potential.
In comparison to its peers, Realty Income Corp. has a P/E ratio of 37.02, which is higher than American Tower Corp. at 34.12 and Prologis, Inc. at 26.72, indicating that while it is relatively high, it remains attractive within the context of its growth prospects. Additionally, the company's dividend yield stands at an impressive 297.26%, which further enhances its appeal to income-focused investors. Despite recent underperformance over the longer term compared to the S&P 500, the recent short-term returns indicate a positive trend, reinforcing the valuation story.