As of June 4, 2025, SL Green Realty Corp has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $60.00, this represents a potential upside of -127.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -149.3% |
| Potential Upside (10-year) | -127.9% |
| Discount Rate (WACC) | 4.5% - 11.9% |
Revenue is projected to grow from $886 million in 12-2024 to $1182 million by 12-2034, representing a compound annual growth rate of approximately 2.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 886 | 3% |
| 12-2025 | 924 | 4% |
| 12-2026 | 957 | 4% |
| 12-2027 | 988 | 3% |
| 12-2028 | 1029 | 4% |
| 12-2029 | 1053 | 2% |
| 12-2030 | 1077 | 2% |
| 12-2031 | 1099 | 2% |
| 12-2032 | 1135 | 3% |
| 12-2033 | 1158 | 2% |
| 12-2034 | 1182 | 2% |
Net profit margin is expected to improve from 3% in 12-2024 to 12% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 30 | 3% |
| 12-2025 | 40 | 4% |
| 12-2026 | 59 | 6% |
| 12-2027 | 77 | 8% |
| 12-2028 | 97 | 9% |
| 12-2029 | 115 | 11% |
| 12-2030 | 121 | 11% |
| 12-2031 | 127 | 12% |
| 12-2032 | 134 | 12% |
| 12-2033 | 140 | 12% |
| 12-2034 | 146 | 12% |
with a 5-year average of $367 million. Projected CapEx is expected to maintain at approximately 40% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 333 |
| 12-2026 | 319 |
| 12-2027 | 326 |
| 12-2028 | 358 |
| 12-2029 | 400 |
| 12-2030 | 413 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 135 |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 331 | 11 | 280 | 3 | 37 |
| 2026 | 455 | 22 | 387 | 7 | 40 |
| 2027 | 489 | 29 | 399 | 19 | 42 |
| 2028 | 550 | 36 | 416 | 12 | 86 |
| 2029 | 619 | 43 | 426 | 8 | 143 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -149.3% |
| 10-Year DCF (Growth) | 0.00 | -127.9% |
| 5-Year DCF (EBITDA) | 26.14 | -56.4% |
| 10-Year DCF (EBITDA) | 22.36 | -62.7% |
Is SL Green Realty Corp (SLG) a buy or a sell? SL Green Realty Corp is definitely a sell. Based on our DCF analysis, SL Green Realty Corp (SLG) appears to be overvalued with upside potential of -127.9%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $60.00.