No Contest! STNLs trump Stocks!

The “cap rate”–or, the rate at which a real estate investment is recapitalized–is simply the inverse of the Price:Earnings ratio, the metric commonly used by stock market investors. Even though we are seeing STNL cap rates as low as in the mid 4’s, some famously expensive stocks are trading at even lower cap rates:

• Apple 4.13
• Amazon 0.98
• Tesla 1.18