Digital Realty Trust, Inc.

NYSE:DLR.PRL Stock Report

Market Cap: US$64.8b

Digital Realty Trust Valuation

Is DLR.PRL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DLR.PRL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DLR.PRL ($22.68) is trading below our estimate of fair value ($30.87)

Significantly Below Fair Value: DLR.PRL is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DLR.PRL?

Key metric: As DLR.PRL is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DLR.PRL. This is calculated by dividing DLR.PRL's market cap by their current revenue.
What is DLR.PRL's PS Ratio?
PS Ratio12.1x
SalesUS$5.37b
Market CapUS$64.78b

Price to Sales Ratio vs Peers

How does DLR.PRL's PS Ratio compare to its peers?

The above table shows the PS ratio for DLR.PRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average10.1x
EQIX Equinix
11.6x9.5%US$94.7b
PSA Public Storage
13x4.4%US$61.1b
AMT American Tower
8.7x1.7%US$97.7b
CCI Crown Castle
7x1.6%US$46.2b
DLR.PRL Digital Realty Trust
12.1x10.0%US$64.8b

Price-To-Sales vs Peers: DLR.PRL is expensive based on its Price-To-Sales Ratio (12.1x) compared to the peer average (10.1x).


Price to Sales Ratio vs Industry

How does DLR.PRL's PS Ratio compare vs other companies in the US Specialized REITs Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
CORL.Q CorEnergy Infrastructure Trust
0.1xn/aUS$194.73k
No more companies available in this PS range
DLR.PRL 12.1xIndustry Avg. 6.3xNo. of Companies5PS048121620+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DLR.PRL is expensive based on its Price-To-Sales Ratio (12.1x) compared to the US Specialized REITs industry average (6.3x).


Price to Sales Ratio vs Fair Ratio

What is DLR.PRL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DLR.PRL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio12.1x
Fair PS Ratio9.7x

Price-To-Sales vs Fair Ratio: DLR.PRL is expensive based on its Price-To-Sales Ratio (12.1x) compared to the estimated Fair Price-To-Sales Ratio (9.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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