EQIX Relative Valuation
EQIX'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, EQIX is overvalued; if below, it's undervalued.
Historical Valuation
Equinix Inc (EQIX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 49.15 is considered Undervalued compared with the five-year average of 81.64. The fair price of Equinix Inc (EQIX) is between 856.02 to 1324.00 according to relative valuation methord. Compared to the current price of 732.72 USD , Equinix Inc is Undervalued By 14.4%.
Relative Value
Fair Zone
856.02-1324.00
Current Price：732.72
14.4%
Undervalued
48.71
PE
1Y
3Y
5Y
Trailing
Forward
18.28
EV/EBITDA
Equinix Inc. (EQIX) has a current EV/EBITDA of 18.28. The 5-year average EV/EBITDA is 22.52. The thresholds are as follows: Strongly Undervalued below 18.22, Undervalued between 18.22 and 20.37, Fairly Valued between 24.67 and 20.37, Overvalued between 24.67 and 26.82, and Strongly Overvalued above 26.82. The current Forward EV/EBITDA of 18.28 falls within the Undervalued range.
42.13
EV/EBIT
Equinix Inc. (EQIX) has a current EV/EBIT of 42.13. The 5-year average EV/EBIT is 59.26. The thresholds are as follows: Strongly Undervalued below 42.18, Undervalued between 42.18 and 50.72, Fairly Valued between 67.80 and 50.72, Overvalued between 67.80 and 76.34, and Strongly Overvalued above 76.34. The current Forward EV/EBIT of 42.13 falls within the Strongly Undervalued range.
7.22
PS
Equinix Inc. (EQIX) has a current PS of 7.22. The 5-year average PS is 8.77. The thresholds are as follows: Strongly Undervalued below 6.80, Undervalued between 6.80 and 7.79, Fairly Valued between 9.75 and 7.79, Overvalued between 9.75 and 10.73, and Strongly Overvalued above 10.73. The current Forward PS of 7.22 falls within the Undervalued range.
16.28
P/OCF
Equinix Inc. (EQIX) has a current P/OCF of 16.28. The 5-year average P/OCF is 22.04. The thresholds are as follows: Strongly Undervalued below 16.41, Undervalued between 16.41 and 19.23, Fairly Valued between 24.85 and 19.23, Overvalued between 24.85 and 27.66, and Strongly Overvalued above 27.66. The current Forward P/OCF of 16.28 falls within the Strongly Undervalued range.
-108.08
P/FCF
Equinix Inc. (EQIX) has a current P/FCF of -108.08. The 5-year average P/FCF is 84.76. The thresholds are as follows: Strongly Undervalued below -780.90, Undervalued between -780.90 and -348.07, Fairly Valued between 517.59 and -348.07, Overvalued between 517.59 and 950.42, and Strongly Overvalued above 950.42. The current Forward P/FCF of -108.08 falls within the Historic Trend Line -Fairly Valued range.
Equinix Inc (EQIX) has a current Price-to-Book (P/B) ratio of 5.08. Compared to its 3-year average P/B ratio of 6.00 , the current P/B ratio is approximately -15.34% higher. Relative to its 5-year average P/B ratio of 6.03, the current P/B ratio is about -15.67% higher. Equinix Inc (EQIX) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.26%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.13% , the current FCF yield is about -100.00% lower.
5.04
P/B
Median3y
6.00
Median5y
6.03
5.21
FCF Yield
Median3y
4.26
Median5y
4.13
Competitors Valuation Multiple
The average P/S ratio for EQIX's competitors is , providing a benchmark for relative valuation. Equinix Inc Corp (EQIX) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.22%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EQIX decreased by 22.99% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 13.45 to 16.15.
The secondary factor is the Revenue Growth, contributed 5.22%to the performance.
Overall, the performance of EQIX in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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