As of May 31, 2025, RPT Realty's estimated intrinsic value ranges from $33.88 to $1240.81 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1240.81 | +45350.8% |
| Discounted Cash Flow (5Y) | $1132.14 | +41370.2% |
| Dividend Discount Model (Multi-Stage) | $260.26 | +9433.5% |
| Earnings Power Value | $33.88 | +1141.2% |
Is RPT Realty (RPT) undervalued or overvalued?
With the current market price at $2.73, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate RPT Realty's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.78 | 3.09 |
| Cost of equity | 12.1% | 22.2% |
| Cost of debt | 4.0% | 6.1% |
| Tax rate | 0.5% | 0.5% |
| Debt/Equity ratio | 5.96 | 5.96 |
| After-tax WACC | 5.1% | 8.4% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $1,132 | $52,084M | 77.8% |
| 10-Year Growth | $1,241 | $57,020M | 58.9% |
| 5-Year EBITDA | $996 | $45,896M | 74.8% |
| 10-Year EBITDA | $1,128 | $51,910M | 54.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $140M |
| Discount Rate (WACC) | 8.4% - 5.1% |
| Enterprise Value | $1,674M - $2,721M |
| Net Debt | $658M |
| Equity Value | $1,015M - $2,063M |
| Outstanding Shares | 45M |
| Fair Value | $22 - $45 |
| Selected Fair Value | $33.88 |
| Metric | Value |
|---|---|
| Market Capitalization | $124M |
| Enterprise Value | $782M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.34 |
| Trailing EV/EBITDA | 13.55 |
| Current Dividend Yield | 753.71% |
| Dividend Growth Rate (5Y) | -10.07% |
| Debt-to-Equity Ratio | 5.96 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $372.24 |
| Discounted Cash Flow (5Y) | 29% | $283.03 |
| Dividend Discount Model (Multi-Stage) | 24% | $52.05 |
| Earnings Power Value | 12% | $3.39 |
| Weighted Average | 100% | $836.14 |
Based on our comprehensive valuation analysis, RPT Realty's weighted average intrinsic value is $836.14, which is approximately 30527.7% above the current market price of $2.73.
Key investment considerations:
Given these factors, we believe RPT Realty is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.