SL Green Realty Corp. (SLG) — Fair Value Analysis

Base-case fair value (P50): $15.35 · Current price: $56.09 · Verdict: Overvalued

The Verdict on SLG

SL GREEN REALTY REIT CORP (SLG) is currently assessed as Deeply Overvalued based on our Monte Carlo simulations. The model indicates a median fair value (P50) of $15.35, standing in stark contrast to the current market price of $56.09. This substantial discrepancy suggests a potential downside of -72.6% from the current trading level, reinforcing the deeply overvalued verdict. While SLG's quality tier is currently unrated, the primary signal from our quantitative valuation points to significant price risk.

How SLG stacks up against peers

Despite SLG being unrated in terms of operational and financial health against its sector, the valuation gap remains the most compelling factor. Our Monte Carlo analysis, which runs thousands of forward scenarios, consistently places SLG's median fair value at $15.35, considerably below its current trading price of $56.09. This persistent gap, quantified as -72.6%, highlights a market valuation disconnected from the simulated intrinsic value, regardless of its unrated quality standing. The "Deeply Overvalued" verdict emphasizes this significant divergence within the broader market context.

What this means for investors

For investors considering SLG, the substantial -72.6% overvaluation, derived from our Monte Carlo fair value of $15.35 compared to the $56.09, warrants significant caution. The unrated quality tier means that while specific operational and financial health comparisons are not provided, the valuation itself presents a clear signal. This suggests that the current market price may not be sustainable given the simulated fair value. To gain a complete understanding of the various outcomes, including detailed bear and bull case scenarios, sign up for FairCurve to see the full Monte Carlo distribution and track SLG's fair value as new fundamentals are released.