Vornado Realty Trust owns, manages and leases office properties in New York City, Washington, DC, and California. The Company also owns retail properties Washington, DC and Puerto Rico. The company was founded in 1982 and is based in New York, New York.
VNO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Vornado Realty Trust with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Vornado Realty Trust ranked in the 90th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2145%. As for the metrics that stood out in our discounted cash flow analysis of Vornado Realty Trust, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 12.34 -- which is good for besting 90.04% of its peer stocks (US stocks in the Real Estate sector with positive cash flow).
Vornado Realty Trust's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 4.32% of tickers in our DCF set.
VNO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 4.32% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KRG, CLNC, PEB, NMRK, and EXR can be thought of as valuation peers to VNO, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.