DigitalBridge (DBRG): Revisiting Valuation After Recent Pullback and Strong Year-to-Date Gains

DigitalBridge Group (DBRG) has quietly put up a mixed near term performance, slipping over the past week but still sitting on a strong month long gain, which has investors reconsidering its risk reward profile.

See our latest analysis for DigitalBridge Group.

The recent pullback sits against a much stronger backdrop, with an 18.35% year to date share price return and a 1 year total shareholder return of 18.06% suggesting momentum is cooling, not collapsing.

If DigitalBridge’s swings have your attention, this could be a smart moment to see what else is moving and explore fast growing stocks with high insider ownership.

With shares still below analyst targets despite rapid revenue and earnings growth, investors are now asking: Is DigitalBridge an undervalued digital infrastructure play, or is the market already pricing in its next leg of growth?

Most Popular Narrative: 24% Undervalued

With DigitalBridge’s fair value pitched well above the last close, the most widely followed narrative argues the market is underestimating long term earnings power.

The explosion in AI workloads and hyperscale/cloud CapEx is driving unprecedented demand for data centers and power, fueling a substantial multi year leasing and development pipeline for DigitalBridge; this supports long term revenue, FEEUM, and EBITDA growth as the company monetizes these trends through new asset deployment and leasing.

Read the complete narrative.

Curious how this story turns accelerating AI demand, fatter margins, and a richer fee mix into today’s valuation call? The narrative’s growth math may surprise you.

Result: Fair Value of $17.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained high rates or intensifying competition could squeeze fundraising and fee margins, undermining the bullish growth and valuation assumptions underpinning this thesis.

Find out about the key risks to this DigitalBridge Group narrative.

Another Lens on Value

While the narrative model points to a fair value around 17.28 dollars, our multiples based view is much harsher. At roughly 117.5 times earnings versus an industry average of 24.4 times and a fair ratio of 30.8 times, the stock screens as expensive, not cheap. Could sentiment be running ahead of fundamentals?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own DigitalBridge Group Narrative

If you see the setup differently or want to test your own assumptions against the numbers, you can build a complete narrative in minutes, Do it your way.

A great starting point for your DigitalBridge Group research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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