P/E Ratio

The P/E ratio of 51.6x means that investors are paying $51.60 for every $1 of Realty Income’s earnings per share — a measure of how expensive the stock is relative to its profitability.

This is far above the Real Estate sector median of 26.8x, placing the stock at the 100th percentile among its peers, meaning it is more expensive than every other company in the sector with available data. The year-over-year change and quarter-over-quarter change are both listed as N/A, and the trend over the last eight quarters is also N/A, so there is no directional history to assess. Without a trend, the combination of an extremely high P/E and no movement over time implies that the stock carries a valuation risk — investors are paying a premium with no evidence of recent compression or expansion. This metric directly supports the overall CAUTIOUS verdict, as a P/E of 51.6x signals that the stock is priced well above typical sector levels, suggesting limited margin of safety.

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