Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 5.60%, lower than industry average of 8.57%.

Growth Trajectory

Profitability

In the growth phase company makes 54.15% profit on every dollar of sales, higher than industry average of 31.12%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.40% 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
44.29B USD
Equity Value
6.02B USD
FCF Yield
13.18%
Average ROIC
5.55%
Cost of Capital
6.64%
P/E Ratio
22.87x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues8.56B USD8.20B USD
Operating Income or EBIT4.74B USD4.95B USD
Interest Expense919.27M USD837.30M USD
Book Value Of Equity52.66B USD53.89B USD
Book Value Of Debt34.67B USD31.49B USD
Cash and Marketable Securities1.07B USD1.32B USD
Number of Shares Outstanding928.04M--
Minority interests4.67B USD0 USD
Current Stock Price112.29 USD--
Effective Tax Rate4.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-4.19%
4.37%Company
vs
8.56%Industry
Below Industry
Operating Margin
+24.31%
55.42%Company
vs
31.11%Industry
Above Industry
Prologis, 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
8.83%
Reinvestment Rate
52.09%
Terminal value represents 82% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 36.46B USD Add
Present Value (Cash Flow Over Next 10 Years) 7.82B USD Add
Value of Operating Assets 44.29B USD Sub-total
Debt 34.66B USD Subtract
Minority Interests 4.66B USD Subtract
Cash 1.06B USD Add
Value of Equity 6.02B USD Sub-total
Number of Shares 928.04M shares Divisor
Estimated Value per Share (Fair Value) 6.49 USD Total
Current Market Price 112.29 USD Reference

Financial Projections

Total FCF Present Value
7.82B USD
Avg Revenue Growth
4.80%
Avg Operating Margin
53.86%
Avg ROIC
5.55%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue9.04B USD9.55B USD10.08B USD10.65B USD11.24B USD11.85B USD12.47B USD13.09B USD13.72B USD14.35B USD15.01B USD
Growth Rate 5.67% 5.59% 5.59% 5.59% 5.59% 5.39% 5.19% 4.99% 4.79% 4.59% 4.59%
PROFITABILITY
Operating Income5.01B USD5.21B USD5.46B USD5.72B USD5.99B USD6.31B USD6.64B USD6.97B USD7.31B USD7.65B USD8.00B USD
Operating Margin 55.42% 54.57% 54.14% 53.72% 53.29% 53.29% 53.29% 53.29% 53.29% 53.29% 53.29%
EBIT (1-tax)4.81B USD5.00B USD5.24B USD5.49B USD5.75B USD5.80B USD5.82B USD5.82B USD5.79B USD5.73B USD6.00B USD
CASH FLOW
Reinvestment3.98B USD4.21B USD4.44B USD4.69B USD4.78B USD4.34B USD4.39B USD4.43B USD4.45B USD4.65B USD3.12B USD
Free Cash Flow825.15M USD793.23M USD796.39M USD797.42M USD972.89M USD1.45B USD1.42B USD1.38B USD1.33B USD1.07B USD2.87B USD
Terminal Value--------------------67.96B USD
Present Value782.84M USD713.97M USD680.07M USD646.04M USD747.78M USD1.05B USD966.31M USD875.54M USD781.94M USD579.16M USD—
EFFICIENCY
ROIC 5.57% 5.54% 5.55% 5.55% 5.55% 5.35% 5.16% 4.96% 4.76% 4.55% 8.83%
Cost of Capital 5.40% 5.40% 5.40% 5.40% 5.40% 6.08% 6.77% 7.45% 8.14% 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)