DLR Valuation

Digital Realty Trust Inc

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169.490

-2.68(-1.557%)1D

Overview
Forecast
Valuation
Earnings

DLR Relative Valuation

DLR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DLR is overvalued; if below, it's undervalued.

Historical Valuation

Digital Realty Trust Inc (DLR) is now in the Fair zone, suggesting that its current forward PE ratio of 110.04 is considered Fairly compared with the five-year average of 107.32. The fair price of Digital Realty Trust Inc (DLR) is between 108.65 to 181.34 according to relative valuation methord.

Relative Value

Fair Zone

108.65-181.34

Current Price：172.17

Fair

110.04

Trailing

Forward

24.22

EV/EBITDA

Digital Realty Trust Inc. (DLR) has a current EV/EBITDA of 24.22. The 5-year average EV/EBITDA is 22.40. The thresholds are as follows: Strongly Undervalued below 17.69, Undervalued between 17.69 and 20.05, Fairly Valued between 24.76 and 20.05, Overvalued between 24.76 and 27.12, and Strongly Overvalued above 27.12. The current Forward EV/EBITDA of 24.22 falls within the Historic Trend Line -Fairly Valued range.

82.97

EV/EBIT

Digital Realty Trust Inc. (DLR) has a current EV/EBIT of 82.97. The 5-year average EV/EBIT is 75.08. The thresholds are as follows: Strongly Undervalued below 55.09, Undervalued between 55.09 and 65.08, Fairly Valued between 85.07 and 65.08, Overvalued between 85.07 and 95.07, and Strongly Overvalued above 95.07. The current Forward EV/EBIT of 82.97 falls within the Historic Trend Line -Fairly Valued range.

9.88

Digital Realty Trust Inc. (DLR) has a current PS of 9.88. The 5-year average PS is 8.15. The thresholds are as follows: Strongly Undervalued below 4.98, Undervalued between 4.98 and 6.57, Fairly Valued between 9.73 and 6.57, Overvalued between 9.73 and 11.31, and Strongly Overvalued above 11.31. The current Forward PS of 9.88 falls within the Overvalued range.

25.10

P/OCF

Digital Realty Trust Inc. (DLR) has a current P/OCF of 25.10. The 5-year average P/OCF is 19.29. The thresholds are as follows: Strongly Undervalued below 11.23, Undervalued between 11.23 and 15.26, Fairly Valued between 23.33 and 15.26, Overvalued between 23.33 and 27.36, and Strongly Overvalued above 27.36. The current Forward P/OCF of 25.10 falls within the Overvalued range.

-35.18

P/FCF

Digital Realty Trust Inc. (DLR) has a current P/FCF of -35.18. The 5-year average P/FCF is -65.61. The thresholds are as follows: Strongly Undervalued below -484.05, Undervalued between -484.05 and -274.83, Fairly Valued between 143.61 and -274.83, Overvalued between 143.61 and 352.83, and Strongly Overvalued above 352.83. The current Forward P/FCF of -35.18 falls within the Historic Trend Line -Fairly Valued range.

Digital Realty Trust Inc (DLR) has a current Price-to-Book (P/B) ratio of 2.89. Compared to its 3-year average P/B ratio of 2.28 , the current P/B ratio is approximately 26.80% higher. Relative to its 5-year average P/B ratio of 2.36, the current P/B ratio is about 22.48% higher. Digital Realty Trust Inc (DLR) has a Forward Free Cash Flow (FCF) yield of approximately 3.88%. Compared to its 3-year average FCF yield of 4.32%, the current FCF yield is approximately -10.17% lower. Relative to its 5-year average FCF yield of 4.24% , the current FCF yield is about -8.45% lower.

2.89

P/B

Median3y

2.28

Median5y

2.36

3.88

FCF Yield

Median3y

4.32

Median5y

4.24

Competitors Valuation Multiple

The average P/S ratio for DLR's competitors is 9.68, providing a benchmark for relative valuation. Digital Realty Trust Inc Corp (DLR) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 5.75%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

DLR.N

Digital Realty Trust Inc

Simon Property Group Inc

Performance Decomposition

Market capitalization of DLR increased by 11.79% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 95.60 to 163.55.

The secondary factor is the Revenue Growth, contributed 5.75%to the performance.

Overall, the performance of DLR in the past 1 year is driven by P/E Change. Which is more unsustainable.

5.75%

1.33B → 1.41B

Revenue Growth

-65.03%

21.62 → 7.56

Margin Expansion

71.07%

95.60 → 163.55

P/E Change

11.79%