Wondering if W. P. Carey is still a bargain after its rebound, or if the easy money has already been made? Let us unpack what the current share price is really implying about future cash flows.
Despite a soft patch recently with the stock down 1.6% over the last week and roughly flat over 30 days, W. P. Carey is still up 22.1% year to date and 25.8% over the past year, suggesting sentiment has improved markedly.
That shift in mood has come alongside W. P. Carey’s ongoing repositioning of its portfolio toward more resilient, longer lease assets and a simplified structure focused on core net lease properties. Investors have been watching how these moves might stabilize income and reduce risk in a higher rate environment, which helps explain the stronger share price over the last year.
On our quick valuation checks, W. P. Carey scores a modest 2 out of 6, hinting at some value on offer but not screamingly cheap. Next, we will walk through the main valuation approaches that drive that score, then finish by looking at a more complete way to judge whether the stock really fits your portfolio.
W. P. Carey scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow model takes W. P. Carey’s adjusted funds from operations, projects them into the future, then discounts those cash flows back to today to estimate what the business is worth in $.
On this basis, W. P. Carey is generating roughly $1.04 billion of free cash flow today, and analysts expect this to rise steadily over time. By 2028, projected free cash flow reaches about $1.37 billion, and Simply Wall St then extrapolates those analyst estimates further out to 2035, with discounted values for each year reflecting the time value of money and risk.
Adding up all those discounted cash flows yields an intrinsic value of about $151.33 per share. Compared with the current share price, the model implies the stock is trading at a 56.2% discount to its estimated fair value. This suggests meaningful upside if the cash flow trajectory plays out as expected.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests W. P. Carey is undervalued by 56.2%. Track this in your watchlist or portfolio, or discover 906 more undervalued stocks based on cash flows.
WPC Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for W. P. Carey.
For a profitable REIT like W. P. Carey, the price to earnings ratio is a useful cross check on valuation because it directly compares what investors pay today with the profits the business generates each year. In general, companies with faster, more reliable growth and lower risk can justify a higher PE, while slower growth or higher uncertainty usually deserves a lower, more conservative multiple.
W. P. Carey currently trades on about 39.81x earnings, which is well above the broader REITs industry average of roughly 15.74x and also ahead of the 28.51x average of its closest peers. Simply Wall St’s proprietary Fair Ratio for W. P. Carey is 36.07x, which represents the PE you might expect once you factor in its specific earnings growth outlook, risk profile, profit margins, industry positioning, and market cap.
This Fair Ratio is more informative than a simple peer or sector comparison because it adjusts for those company specific drivers rather than assuming all REITs deserve the same multiple. With the market paying 39.81x versus a Fair Ratio of 36.07x, the shares currently trade at a higher level than what the fundamentals alone would justify.
Result: OVERVALUED
NYSE:WPC PE Ratio as at Dec 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. This is an easy tool on Simply Wall St’s Community page where millions of investors connect a company’s story with their own assumptions for future revenue, earnings, margins, and fair value. They can then compare that dynamic fair value to today’s share price to decide whether to buy, hold, or sell, with the Narrative automatically updating as fresh news or earnings arrive so views stay current. For example, one W. P. Carey Narrative might assume that its industrial pivot, inflation linked leases, and European funding edge support faster growth and a higher fair value around $75. A more cautious Narrative might focus on tenant credit risk, rising rates, and reliance on asset sales and therefore land closer to $60. This shows how different but clearly explained perspectives can sit side by side and help you choose which story you believe and what that implies for your own next move.
Do you think there’s more to the story for W. P. Carey? Head over to our Community to see what others are saying!
NYSE:WPC Community Fair Values as at Dec 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include WPC.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
