If you are wondering whether SL Green Realty is a bargain or a value trap at around $44 a share, you are not alone. That is exactly what this breakdown is going to unpack.
The stock has slipped 0.7% over the last week and is only up 0.9% over the past month, but that comes after a volatile ride that still leaves it down 35.2% year to date and 31.2% over the last year, while surprisingly gaining 62.2% over three years and 5.8% over five.
Those swings have played out against a backdrop of shifting sentiment on New York office demand, with headlines focusing on hybrid work, refinancing risk and what a higher for longer rate environment means for highly leveraged landlords. At the same time, SL Green has been in the news for selective asset sales, joint ventures and debt refinancings that the market is reading as a test of how resilient prime Manhattan real estate values really are.
On our framework, SL Green Realty currently scores just 2 out of 6 on undervaluation checks. We will walk through what each standard valuation method says about that price and then finish with a more nuanced way to think about fair value that goes beyond the usual multiples and models.
SL Green Realty 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 projects SL Green Realty’s adjusted funds from operations into the future and then discounts those cash flows back to today in dollar terms to estimate what the business is worth now.
SL Green generated roughly $459.4 million of free cash flow over the last twelve months. Analysts expect cash flows to rise into the next decade, with projections around $288.9 million by 2035, based on a two-stage Free Cash Flow to Equity model that blends explicit analyst estimates with Simply Wall St extrapolations for later years.
When all of those future cash flows are discounted back to today, the model arrives at an intrinsic value of about $48.45 per share. Compared with the current market price near $44, the DCF suggests the stock is trading at roughly an 8.5% discount. This indicates it may be slightly cheaper than its estimated long-term value but not dramatically mispriced.
Result: ABOUT RIGHT
SL Green Realty is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment’s notice. Track the value in your watchlist or portfolio and be alerted on when to act.
SLG Discounted Cash Flow as at Dec 2025
Story Continues
For a real estate investment trust where accounting earnings can be distorted by non cash charges, price to sales is often a more intuitive way to gauge what investors are paying for each dollar of revenue. In general, companies with stronger growth prospects and lower risk can justify a higher normal valuation multiple, while slower growing or riskier names usually deserve a discount.
SL Green currently trades on a price to sales ratio of about 4.76x. That is above both the Office REITs industry average of roughly 2.03x and the peer group average around 4.05x, suggesting the market is already assigning a premium to its revenue base. To refine that view, Simply Wall St uses a proprietary Fair Ratio, which estimates what a justified price to sales multiple should be after considering factors like SL Green’s growth outlook, risk profile, profit margins, industry positioning and market cap. On this framework, SL Green’s Fair Ratio comes out at about 1.95x, well below its current 4.76x, implying investors are paying significantly more than our model deems reasonable for the fundamentals on offer.
Result: OVERVALUED
NYSE:SLG PS Ratio as at Dec 2025
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple tool on Simply Wall St’s Community page that lets you tell the story behind your numbers by linking your view of SL Green Realty’s future revenue, earnings and margins to a financial forecast and resulting fair value. It updates dynamically as new news or earnings arrive and can help you decide when to buy or sell by comparing that fair value with today’s price. You might lean toward a bullish scenario that sees transformative Midtown projects, tightening supply and premium Class A demand justifying a fair value near the top analyst target around $76. Alternatively, you may prefer a more cautious view that emphasizes refinancing risk, tenant churn and hybrid work headwinds that keep fair value closer to the low end near $50. Both narratives can coexist on the platform so you can see how different investors connect the same facts to very different price conclusions.
Do you think there’s more to the story for SL Green Realty? Head over to our Community to see what others are saying!
NYSE:SLG 1-Year Stock Price Chart
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 SLG.
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