WallStSmart
NLY

Annaly Capital Management, Inc.

NYSE: NLY · REAL ESTATE · REIT - MORTGAGE

$22.54
-1.27% today

Updated 2026-04-29

Market cap
$16.46B
P/E ratio
7.27
P/S ratio
6.58x
EPS (TTM)
$3.10
Dividend yield
12.30%
52W range
$16 – $24
Volume
7.4M

Annaly Capital Management, Inc. (NLY) Stock Valuation Analysis

Fair value estimate, historical valuation range, and quality signals for NLY.

WallStSmart Verdict
Attractively
Valued

Fundamentals support the current valuation. Strong combination of growth, quality, and price.

Smart Value Score: 77 / 100
P/E (TTM)
7.3x
vs 5Y median of 7.6x
PEG
32.03
Elevated vs growth
Margin of Safety
-13.77%
Fair value $20.05 vs $22.54
EV / EBITDA
0.0x

NLY historical valuation range

Where current P/E sits in NLY's own 5Y range.

NOW
2.5x
5Y Low
6.1x
25th
7.6x
Median
8.9x
75th
23.1x
5Y High
NLY is trading cheaper than 67% of the last 5Y.
33th percentile · Below median

NLY intrinsic value (DCF)

DCF-based fair value estimate vs current market price.

Current price
$22.54
Market value
Intrinsic value
$20.05
DCF estimate
Margin of safety
-13.77%
-11.0% upside to fair value

Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.

NLY valuation signals

Quick-read green flags, caution flags, and risks based on current metrics.

PEG above 2.0
PEG of 32.03 suggests price is running ahead of growth rate. Caution warranted.
!
P/E in mid-range
P/E sits at the 33th percentile of the 5Y range. Neither cheap nor rich historically.
Premium to fair value
Price exceeds DCF intrinsic value by 13.8%. Limited downside protection.
Weak financial quality
Piotroski F-Score of 3/9 suggests deteriorating fundamentals. Valuation requires closer scrutiny.

P/E Ratio — History

Current: 7.27x

P/S Ratio — History

Current: 6.58x

Is NLY overvalued in 2026?

Annaly Capital Management, Inc. (NLY) currently trades at $22.54 per share with a market capitalization of $16,460,749,000.00. Based on our multi-factor framework, the stock looks attractively valued with a Smart Value Score of 77/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.

The stock trades at a P/E ratio of 7.3x, below its 5-year median of 7.6x. The PEG ratio of 32.03 indicates the price has run ahead of the underlying growth rate.

Looking at its own history, NLY is currently trading cheaper than 67% of the last 5Y on P/E. This places it in the 33th percentile of its historical range, a reasonable but unremarkable position.

Our discounted cash flow model estimates NLY's intrinsic value at $20.05 per share, against the current market price of $22.54. This implies a premium to fair value of -13.77%. The current price sits well above what projected cash flows justify, implying investors are paying for growth that has not yet materialized.

Financial quality is a concern. The Piotroski F-Score of 3/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.

Bottom line: NLY looks attractively valued on our framework, with a Smart Value Score of 77/100. The combination of reasonable price, healthy growth, and quality fundamentals makes it worth serious consideration.

Frequently asked questions

Is NLY overvalued in 2026?

Based on a Smart Value Score of 77/100, NLY is not overvalued. Fundamentals support the current price and offer reasonable margin of safety.

What is NLY's fair value?

Our DCF model estimates NLY's intrinsic value at $20.05 per share, versus the current price of $22.54. This produces a margin of safety of -13.77%.

What P/E ratio does NLY trade at?

NLY trades at a P/E of 7.3x on trailing twelve-month earnings, compared to its 5-year median of 7.6x.

Is NLY a buy based on valuation?

WallStSmart does not issue buy or sell recommendations. Our Smart Value Score of 77/100 reflects the combined read on growth, quality, and price. The profile skews favorable for long-term accumulation.

How does NLY's valuation compare to its history?

On P/E, NLY currently sits in the 33th percentile of its own 5Y range. That is below its long-run median relative to where it has traded over the period.

What is NLY's Smart Value Score?

NLY's Smart Value Score is 77/100. The Smart Value Score is a proprietary WallStSmart metric blending growth quality, financial health, and valuation attractiveness into a single 0-100 read. Scores above 75 are rare and indicate strong multi-factor alignment.