The estimated intrinsic value of Vornado Realty Trust (VNO-PL) using a Price-to-Funds From Operations (P/FFO) model is $35.37 (based on the recommended P/FFO method), compared to the current stock price of $17.76. This suggests the stock may be undervalued by 99.2% relative to its intrinsic value.

For Real Estate Investment Trusts (REITs), standard DCF models can be misleading because depreciation — a large non-cash charge — distorts net income. Instead, SharesGrow uses a Price-to-FFO (Funds From Operations) model: Intrinsic Value = FFO Per Share × 17 (sector-average P/FFO multiple). FFO adds back depreciation to net income, providing a more accurate picture of a REIT's recurring cash-generating ability — the industry-standard metric for REIT valuation.

The valuation uses a CAPM-derived discount rate of 7.5% (CAPM-derived from beta of 1.53). For comparison, the standard 20-year DCF model produces: Operating Cash Flow (OCF): $189.55 | Free Cash Flow (FCF): $191.78 | Net Income (NI): $61.47.