Digital Realty Trust Inc
Exchange: NYSESector: Real EstateIndustry: REIT - Specialty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.
Did you know?
A large-cap company with a $69.0B market cap.
Current Price
$200.70
-0.12%GoodMoat Value
$73.27
63.5% overvaluedProfile
Valuation (TTM)
Market Cap$68.96B
P/E51.57
EV$76.82B
P/B3.01
Shares Out343.62M
P/Sales10.88
Revenue$6.34B
EV/EBITDA22.47
Digital Realty Trust Inc (DLR) Stock Analysis
GoodMoat Analysis
Digital Realty Trust is a data center REIT with a potential moat in scale and strategic partnerships, but it fails the GoodMoat Decision Framework's first gate. The business shows weak quality indicators and is priced at a significant premium to its estimated fair value, making it an unfavourable candidate for value investors.
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Digital Realty Trust Inc (DLR) is a real estate investment trust (REIT) that owns and operates a global portfolio of data center facilities, providing critical infrastructure for cloud and enterprise customers. Applying the GoodMoat framework, the company demonstrates potential competitive advantages in scale privilege and strategic partnerships, likely meeting several criteria in Section 1 (Moat). However, the business fails to meet the quality standards required to proceed to valuation analysis. Key quality indicators are weak: the Return on Equity of 5.7% is far below the 15-20% ROIC threshold for a quality business, the Free Cash Flow yield is low at 1.4%, and the operating margin of 10.8% suggests limited operating leverage. According to Section 6 (Decision Framework), a business must pass the 'Moat & Quality Gate' before valuation is considered. The weak quality profile, despite a likely adequate moat score, results in a low X-Ray Business Score, failing Step 1. Furthermore, the valuation is deeply unfavourable. The stock trades at $176.43, which is a 141% premium to the GoodMoat Target price of $73.27, indicating a severe lack of margin of safety. For a value investor focused on durable advantages and a margin of safety, DLR does not qualify for further investigation based on the current data. Analysis based on data as of 2024-05-15.
Market Cap$68.96B
Current Price$200.70
P/E Ratio51.57
Forward P/E—
PEG Ratio0.81
EPS$3.58
Book Value$66.72
P/B Ratio3.01
DLR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 49.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 16.2B
Revenue
3.2B
FY19
3.9B
FY20
4.4B
FY21
4.7B
FY22
5.5B
FY23
5.6B
FY24
6.1B
FY25
Net Income
580M
FY19
356M
FY20
1.7B
FY21
378M
FY22
949M
FY23
602M
FY24
1.3B
FY25
DLR 52-Week Range
$146.93
$203.91
50-Day MA: $184.74200-Day MA: $169.45
Did you know?
Profit margin of 21.7% — that's well above average.
Digital Realty Trust Inc (DLR) Financial Summary
Digital Realty Trust Inc (DLR) is a Real Estate company in the REIT - Specialty industry, listed on NYSE. The stock currently trades at $200.70 with a market capitalization of $68.96B.
Key valuation metrics include a P/E ratio of 51.57, price-to-book ratio of 3.01, and EPS of $3.58. The company reports a profit margin of 21.7% and return on equity of 6.0%.
DLR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $68.96B |
| P/E Ratio | 51.57 |
| EPS | $3.58 |
| P/B Ratio | 3.01 |
| P/S Ratio | 10.88 |
| EV/EBITDA | 22.47 |
| Dividend Yield | 2.51% |
| Profit Margin | 21.7% |
| Return on Equity | 6.0% |
| Debt/Equity | 0.86 |
DLR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $3.21B | $579.76M |
| FY20 | $3.90B | $356.40M |
| FY21 | $4.43B | $1.71B |
| FY22 | $4.69B | $377.68M |
| FY23 | $5.48B | $948.84M |
| FY24 | $5.55B | $602.49M |
| FY25 | $6.11B | $1.31B |
Digital Realty Trust Inc (DLR) Valuation
Based on GoodMoat's DCF model, Digital Realty Trust Inc has a fair value estimate of $73.27. At the current price of $200.70, the stock appears 173.9% overvalued relative to our intrinsic value estimate.
DLR Quality Indicators
Digital Realty Trust Inc maintains a profit margin of 21.7% and an operating margin of 10.8%. Return on equity stands at 6.0%. Debt-to-equity ratio is 0.86.
About Digital Realty Trust Inc
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.
DLR Free Cash Flow
Digital Realty Trust Inc generated $850.58M in trailing twelve-month free cash flow, representing an FCF yield of 1.23%. This low FCF yield may reflect heavy reinvestment or growth spending.
DLR Shares Outstanding
Digital Realty Trust Inc has 0.34 billion shares outstanding at a share price of $200.70, giving it a market capitalization of $68.96B.