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Empire State Realty OP, L.P. (the "Operating Partnership") is the entity through which Empire State Realty Trust, Inc. (NYSE: ESRT), is a NYC-focused real estate investment trust ("REIT") that owns and operates a portfolio of well-leased, top of tier, modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT s flagship Empire State Building, the World's Most Famous B…
$5.56
+$0.11 (+2.02%)
Live · 05:19 PM
17.66% operating margin is respectable but not wide. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 0.0%, essentially flat. Margins also contracted 3.0pp. This is a business that needs a catalyst.
At 26x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 43% versus the prior year, cash generation momentum has weakened.
26.5x earnings, 24.9x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$779M
Net Income (TTM)
$56M
▼ -9.7% YoY
Op. Margin
17.66%
▼ -3.0pp YoY
ROIC
—
Cash Flow & Balance Sheet
FCF (TTM)
$60M
▼ -42.5% YoY
Op. Cash Flow (TTM)
$235M
▼ -4.5% YoY
Net Debt
$1.23B
Cash & Equiv.
$69M
5Y CAGR: +4.7%
5Y CAGR: -8.4%
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At a P/E of 26.5 and a price-to-free-cash-flow of 24.9, Empire State Realty OP, L.P. (ESBA) trades above a two-stage DCF intrinsic value of about $-0.69 per share, so at $5.56 the stock looks overvalued (112.5% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Empire State Realty OP, L.P. scores 22/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.6%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-0.69 per share for ESBA, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-0.52. At today's $5.56, that puts the stock about 112.5% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Empire State Realty OP, L.P. scores 22 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 17.7% operating margin. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Empire State Realty OP, L.P. pays a regular dividend of about $0.14 per share per year (typically in quarterly installments), a yield of roughly 2.6% at the current price. That is a payout ratio of about 69.5% of earnings, so the dividend is covered, with less cushion. Empire State Realty OP, L.P. has grown the dividend at roughly 8.1% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For ESBA's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. ESBA currently trades above its estimated intrinsic value and scores 22/100 on quality (lower-quality). It also yields about 2.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.