PLD Fair Value Estimate
$73.8946.1% overvalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Prologis Inc
Exchange: NYSESector: Real EstateIndustry: REIT - Industrial
Strategic Capital is Prologis' asset management business, which invests alongside institutional partners in logistics real estate and generates durable fee-based revenue while expanding the company's global presence and leveraging its operating platform. The business manages $102 billion in assets, including $67 billion of third-party capital. About Prologis The world runs on logistics. The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next.
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Carries 30.6x more debt than cash on its balance sheet.
Current Price
$137.19
-0.60%GoodMoat Value
$73.89
46.1% overvaluedProfile
Valuation (TTM)
Market Cap$127.43B
P/E38.36
EV$154.93B
P/B2.40
Shares Out928.87M
P/Sales14.50
Revenue$8.79B
EV/EBITDA22.53
Prologis Inc (PLD) Valuation
GoodMoat Analysis
Prologis appears unfavourable from a value investing perspective, as it trades at a significant premium to its estimated intrinsic value with a negative margin of safety. The stock's valuation multiples are high relative to its modest growth, and it lacks the free cash flow generation typical of a quality investment.
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The current price of $129.40 is 75% above the GoodMoat Target of $73.89, indicating a negative margin of safety of approximately -75%. According to the framework's valuation bands, this is deeply unfavourable, as it requires a margin of safety of at least 20% to be considered attractive. The forward P/E of 36.4x is high, especially when viewed against the sector average for REITs, which typically trade at lower multiples, and the company's modest 4.0% YoY revenue growth. This results in an extremely high PEG ratio, far exceeding the favourable threshold of <1.0. Furthermore, the negative Free Cash Flow Yield of -0.4% fails the framework's quality check for positive, growing FCF and suggests the business is not currently generating owner earnings. While the dividend yield of 3.11% and a reasonable debt level provide some offset, the core valuation metrics signal the stock is expensive relative to its underlying business quality and growth trajectory. The price seems to reflect premium expectations that are not supported by the current financial performance.
PLD Valuation Metrics
FCF$-462.90M
FCF Growth Rate—
EPS Growth (CAGR)—
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →PLD Valuation & Fair Value Analysis
Prologis Inc (PLD) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Prologis Inc is $73.89. The current stock price is $137.19, suggesting the stock is 85.7% overvalued.
The price-to-earnings (P/E) ratio is 38.36. Price-to-book ratio is 2.40. Price-to-sales ratio is 14.50. Enterprise value to EBITDA is 22.53. PEG ratio is 4.07.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Prologis Inc's intrinsic value.