Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 2.55%, lower than industry average of 8.57%.

Growth Trajectory

Profitability

In the growth phase company makes 66.37% profit on every dollar of sales, higher than industry average of 31.12%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.46% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
56.56B USD
Equity Value
38.53B USD
FCF Yield
57.78%
Average ROIC
9.84%
Cost of Capital
6.68%
P/E Ratio
30.73x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues5.77B USD5.55B USD
Operating Income or EBIT1.99B USD1.39B USD
Interest Expense436.39M USD452.84M USD
Book Value Of Equity22.18B USD20.61B USD
Book Value Of Debt19.75B USD18.01B USD
Cash and Marketable Securities3.55B USD3.87B USD
Number of Shares Outstanding340.37M--
Minority interests1.84B USD0 USD
Current Stock Price163.47 USD--
Effective Tax Rate9.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-4.73%
3.83%Company
vs
8.56%Industry
Below Industry
Operating Margin
+3.37%
34.48%Company
vs
31.11%Industry
Above Industry
Digital Realty Trust, Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.82%
Reinvestment Rate
52.09%
Terminal value represents 63% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 35.43B USD Add
Present Value (Cash Flow Over Next 10 Years) 21.13B USD Add
Value of Operating Assets 56.56B USD Sub-total
Debt 19.75B USD Subtract
Minority Interests 1.83B USD Subtract
Cash 3.55B USD Add
Value of Equity 38.53B USD Sub-total
Number of Shares 340.37M shares Divisor
Estimated Value per Share (Fair Value) 113.20 USD Total
Current Market Price 163.46 USD Reference

Financial Projections

Total FCF Present Value
21.13B USD
Avg Revenue Growth
3.71%
Avg Operating Margin
73.46%
Avg ROIC
9.84%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue6.39B USD6.55B USD6.72B USD6.89B USD7.07B USD7.28B USD7.52B USD7.81B USD8.13B USD8.51B USD8.90B USD
Growth Rate 10.85% 2.55% 2.55% 2.55% 2.55% 2.96% 3.37% 3.78% 4.19% 4.59% 4.59%
PROFITABILITY
Operating Income2.20B USD3.65B USD4.46B USD5.31B USD6.19B USD6.38B USD6.59B USD6.84B USD7.13B USD7.46B USD7.80B USD
Operating Margin 34.48% 55.74% 66.37% 77.00% 87.63% 87.63% 87.63% 87.63% 87.63% 87.63% 87.63%
EBIT (1-tax)2.00B USD3.32B USD4.06B USD4.83B USD5.63B USD5.60B USD5.58B USD5.57B USD5.57B USD5.59B USD5.85B USD
CASH FLOW
Reinvestment1.28B USD1.31B USD1.35B USD1.38B USD1.65B USD1.73B USD2.00B USD2.30B USD2.64B USD2.76B USD3.04B USD
Free Cash Flow720.77M USD2.00B USD2.70B USD3.44B USD3.98B USD3.87B USD3.57B USD3.26B USD2.93B USD2.83B USD2.80B USD
Terminal Value--------------------66.28B USD
Present Value683.46M USD1.80B USD2.31B USD2.78B USD3.05B USD2.79B USD2.41B USD2.05B USD1.70B USD1.51B USD—
EFFICIENCY
ROIC 5.22% 8.38% 9.91% 11.41% 12.89% 12.34% 11.84% 11.34% 10.84% 10.35% 8.82%
Cost of Capital 5.45% 5.45% 5.45% 5.45% 5.45% 6.13% 6.80% 7.48% 8.15% 8.82% 8.83%
Sales/Capital 0.12x 0.12x 0.12x 0.12x 0.12x 0.14x 0.14x 0.14x 0.14x 0.14x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)