FRT Fair Value Estimate
$72.4935.0% overvalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Federal Realty Investment Trust.
Exchange: NYSESector: Real EstateIndustry: REIT - Retail
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. As of December 31, 2025, Federal Realty's 104 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,700 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 58 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.
Did you know?
FRT's revenue grew at a 5.3% CAGR over the last 6 years.
Current Price
$111.50
+1.24%GoodMoat Value
$72.49
35.0% overvaluedProfile
Valuation (TTM)
Market Cap$9.62B
P/E23.87
EV$13.87B
P/B2.96
Shares Out86.27M
P/Sales7.52
Revenue$1.28B
EV/EBITDA15.11
Federal Realty Investment Trust. (FRT) Valuation
GoodMoat Analysis
The stock is unfavourable from a value investing perspective. The current price is 42% above the GoodMoat Target, indicating a significant negative margin of safety, and key valuation metrics like the P/E and FCF Yield are not compelling.
Read full analysis
Based on the GoodMoot Valuation Assessment framework, Federal Realty Investment Trust (FRT) appears significantly overvalued. The primary tool, a DCF-based fair value estimate, yields a GoodMoat Target of $72.49. At a current price of $103.27, this represents a negative margin of safety of approximately -42%, placing it deep in the 'Unfavourable' band according to the framework's classification. This overvaluation is corroborated by other metrics. The forward P/E of 22.1x is high for a REIT with 7.5% revenue growth, especially when considering the sector's typical focus on funds from operations (FFO). More critically, the Free Cash Flow Yield is negative at -4.5%, which fails the framework's check for a favourable P/FCF multiple and suggests the business is not generating distributable owner earnings after maintenance capital expenditures. While the dividend yield of 4.36% may appear attractive, the valuation context and lack of a positive FCF yield are significant headwinds. The stock's quality, as suggested by its profitability and ROE, does not justify this premium price. For a value investor seeking a margin of safety, the current price does not offer an attractive entry point. Analysis based on data as of 2024-05-15.
FRT Valuation Metrics
FCF$-404.37M
FCF Growth Rate—
EPS Growth (CAGR)2.53%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →FRT Valuation & Fair Value Analysis
Federal Realty Investment Trust. (FRT) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Federal Realty Investment Trust. is $72.49. The current stock price is $111.50, suggesting the stock is 53.8% overvalued.
The price-to-earnings (P/E) ratio is 23.87. Price-to-book ratio is 2.96. Price-to-sales ratio is 7.52. Enterprise value to EBITDA is 15.11. PEG ratio is 0.24.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Federal Realty Investment Trust.'s intrinsic value.