Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by -6.24%, lower than industry average of 8.57%.

Growth Trajectory

Profitability

In the growth phase company makes 67.55% profit on every dollar of sales, higher than industry average of 31.12%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.76% 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
79.86B USD
Equity Value
62.51B USD
FCF Yield
87.79%
Average ROIC
30.26%
Cost of Capital
7.51%
P/E Ratio
46.12x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues8.94B USD8.75B USD
Operating Income or EBIT1.99B USD1.74B USD
Interest Expense500M USD457M USD
Book Value Of Equity14.08B USD13.53B USD
Book Value Of Debt21.85B USD18.96B USD
Cash and Marketable Securities4.53B USD3.61B USD
Number of Shares Outstanding97.82M--
Minority interests24M USD0 USD
Current Stock Price779.54 USD--
Effective Tax Rate17.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-6.34%
2.22%Company
vs
8.56%Industry
Below Industry
Operating Margin
-8.84%
22.27%Company
vs
31.11%Industry
Below Industry
Equinix, Inc. faces challenges in both growth and profitability compared to industry peers, which may indicate competitive pressures or operational inefficiencies.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 40% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 32.22B USD Add
Present Value (Cash Flow Over Next 10 Years) 47.63B USD Add
Value of Operating Assets 79.86B USD Sub-total
Debt 21.85B USD Subtract
Minority Interests 24.00M USD Subtract
Cash 4.53B USD Add
Value of Equity 62.51B USD Sub-total
Number of Shares 97.82M shares Divisor
Estimated Value per Share (Fair Value) 639.11 USD Total
Current Market Price 779.54 USD Reference

Financial Projections

Total FCF Present Value
47.63B USD
Avg Revenue Growth
-0.90%
Avg Operating Margin
77.61%
Avg ROIC
30.26%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue9.68B USD9.07B USD8.51B USD7.97B USD7.48B USD7.17B USD7.03B USD7.05B USD7.22B USD7.56B USD7.91B USD
Growth Rate 8.27% -6.25% -6.25% -6.25% -6.25% -4.08% -1.91% 0.26% 2.43% 4.59% 4.59%
PROFITABILITY
Operating Income2.15B USD4.76B USD5.74B USD6.59B USD7.31B USD7.01B USD6.88B USD6.89B USD7.06B USD7.39B USD7.73B USD
Operating Margin 22.27% 52.45% 67.55% 82.64% 97.73% 97.73% 97.73% 97.73% 97.73% 97.73% 97.73%
EBIT (1-tax)1.79B USD3.95B USD4.77B USD5.47B USD6.06B USD5.70B USD5.49B USD5.39B USD5.41B USD5.54B USD5.79B USD
CASH FLOW
Reinvestment-4.77B USD-4.47B USD-4.19B USD-3.93B USD-2.41B USD-965.17M USD130.30M USD1.21B USD2.34B USD2.45B USD3.02B USD
Free Cash Flow6.55B USD8.41B USD8.95B USD9.39B USD8.46B USD6.67B USD5.36B USD4.18B USD3.06B USD3.08B USD2.77B USD
Terminal Value--------------------65.66B USD
Present Value6.13B USD7.38B USD7.36B USD7.23B USD6.10B USD4.49B USD3.35B USD2.42B USD1.63B USD1.51B USD—
EFFICIENCY
ROIC 5.70% 14.83% 21.51% 30.42% 43.13% 48.93% 51.29% 49.79% 44.94% 38.52% 8.83%
Cost of Capital 6.76% 6.76% 6.76% 6.76% 6.76% 7.17% 7.58% 8.00% 8.41% 8.83% 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)