Intrinsic value of Digital Realty Trust - DLR

Previous Close

$116.49

  Intrinsic Value

$6.80

stock screener

  Rating & Target

str. sell

-94%

  Value-price divergence*

-11%

Previous close

$116.49

 
Intrinsic value

$6.80

 
Up/down potential

-94%

 
Rating

str. sell

 
Value-price divergence*

-11%

Our model is not good at valuating stocks of financial companies, such as DLR.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of DLR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 18.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  21.50
  9.30
  8.87
  8.48
  8.13
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
Revenue, $m
  2,142
  2,341
  2,549
  2,765
  2,990
  3,224
  3,467
  3,720
  3,982
  4,255
  4,538
  4,833
  5,140
  5,460
  5,792
  6,139
  6,500
  6,877
  7,270
  7,681
  8,109
  8,557
  9,025
  9,515
  10,027
  10,563
  11,123
  11,710
  12,325
  12,969
  13,644
Variable operating expenses, $m
 
  1,747
  1,895
  2,049
  2,210
  2,377
  2,550
  2,730
  2,918
  3,113
  3,315
  3,450
  3,669
  3,897
  4,135
  4,382
  4,640
  4,909
  5,190
  5,483
  5,789
  6,108
  6,443
  6,792
  7,158
  7,540
  7,940
  8,359
  8,798
  9,258
  9,740
Fixed operating expenses, $m
 
  43
  44
  45
  46
  48
  49
  50
  51
  52
  54
  55
  56
  58
  59
  61
  62
  64
  66
  67
  69
  71
  72
  74
  76
  78
  80
  82
  84
  86
  88
Total operating expenses, $m
  1,646
  1,790
  1,939
  2,094
  2,256
  2,425
  2,599
  2,780
  2,969
  3,165
  3,369
  3,505
  3,725
  3,955
  4,194
  4,443
  4,702
  4,973
  5,256
  5,550
  5,858
  6,179
  6,515
  6,866
  7,234
  7,618
  8,020
  8,441
  8,882
  9,344
  9,828
Operating income, $m
  496
  552
  610
  671
  734
  800
  868
  939
  1,013
  1,090
  1,170
  1,328
  1,414
  1,504
  1,598
  1,696
  1,798
  1,904
  2,015
  2,131
  2,252
  2,378
  2,510
  2,649
  2,793
  2,945
  3,103
  3,269
  3,443
  3,625
  3,816
EBITDA, $m
  1,015
  1,166
  1,272
  1,383
  1,498
  1,617
  1,742
  1,871
  2,005
  2,145
  2,290
  2,441
  2,598
  2,762
  2,932
  3,110
  3,295
  3,488
  3,689
  3,899
  4,119
  4,349
  4,589
  4,840
  5,102
  5,377
  5,665
  5,966
  6,281
  6,612
  6,958
Interest expense (income), $m
  217
  216
  240
  266
  292
  320
  349
  378
  409
  441
  475
  510
  546
  583
  623
  663
  706
  750
  796
  845
  895
  947
  1,002
  1,060
  1,120
  1,182
  1,248
  1,317
  1,389
  1,464
  1,543
Earnings before tax, $m
  442
  336
  370
  405
  442
  480
  519
  561
  604
  648
  695
  818
  869
  921
  976
  1,032
  1,092
  1,154
  1,219
  1,286
  1,357
  1,431
  1,508
  1,589
  1,674
  1,762
  1,855
  1,952
  2,054
  2,161
  2,273
Tax expense, $m
  10
  91
  100
  109
  119
  130
  140
  151
  163
  175
  188
  221
  235
  249
  263
  279
  295
  312
  329
  347
  366
  386
  407
  429
  452
  476
  501
  527
  555
  584
  614
Net income, $m
  426
  245
  270
  296
  322
  350
  379
  409
  441
  473
  507
  597
  634
  672
  712
  754
  797
  842
  890
  939
  991
  1,044
  1,101
  1,160
  1,222
  1,286
  1,354
  1,425
  1,500
  1,578
  1,659

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  11
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  12,193
  13,302
  14,482
  15,711
  16,989
  18,318
  19,698
  21,134
  22,625
  24,175
  25,786
  27,462
  29,206
  31,021
  32,911
  34,880
  36,933
  39,074
  41,308
  43,640
  46,076
  48,620
  51,280
  54,061
  56,970
  60,014
  63,200
  66,536
  70,029
  73,688
  77,522
Adjusted assets (=assets-cash), $m
  12,182
  13,302
  14,482
  15,711
  16,989
  18,318
  19,698
  21,134
  22,625
  24,175
  25,786
  27,462
  29,206
  31,021
  32,911
  34,880
  36,933
  39,074
  41,308
  43,640
  46,076
  48,620
  51,280
  54,061
  56,970
  60,014
  63,200
  66,536
  70,029
  73,688
  77,522
Revenue / Adjusted assets
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
Average production assets, $m
  10,261
  11,214
  12,209
  13,245
  14,322
  15,442
  16,607
  17,816
  19,074
  20,380
  21,739
  23,152
  24,622
  26,152
  27,745
  29,406
  31,136
  32,941
  34,824
  36,790
  38,844
  40,989
  43,231
  45,576
  48,028
  50,594
  53,280
  56,092
  59,037
  62,122
  65,354
Working capital, $m
  0
  -12
  -13
  -14
  -15
  -16
  -17
  -19
  -20
  -21
  -23
  -24
  -26
  -27
  -29
  -31
  -33
  -34
  -36
  -38
  -41
  -43
  -45
  -48
  -50
  -53
  -56
  -59
  -62
  -65
  -68
Total debt, $m
  5,839
  6,497
  7,185
  7,901
  8,646
  9,421
  10,226
  11,063
  11,932
  12,836
  13,775
  14,753
  15,769
  16,827
  17,929
  19,077
  20,274
  21,522
  22,825
  24,184
  25,604
  27,088
  28,638
  30,260
  31,956
  33,730
  35,588
  37,532
  39,569
  41,702
  43,937
Total liabilities, $m
  7,097
  7,755
  8,443
  9,159
  9,904
  10,679
  11,484
  12,321
  13,190
  14,094
  15,033
  16,011
  17,027
  18,085
  19,187
  20,335
  21,532
  22,780
  24,083
  25,442
  26,862
  28,346
  29,896
  31,518
  33,214
  34,988
  36,846
  38,790
  40,827
  42,960
  45,195
Total equity, $m
  5,096
  5,547
  6,039
  6,551
  7,084
  7,638
  8,214
  8,813
  9,435
  10,081
  10,753
  11,452
  12,179
  12,936
  13,724
  14,545
  15,401
  16,294
  17,225
  18,198
  19,214
  20,275
  21,384
  22,544
  23,757
  25,026
  26,354
  27,745
  29,202
  30,728
  32,327
Total liabilities and equity, $m
  12,193
  13,302
  14,482
  15,710
  16,988
  18,317
  19,698
  21,134
  22,625
  24,175
  25,786
  27,463
  29,206
  31,021
  32,911
  34,880
  36,933
  39,074
  41,308
  43,640
  46,076
  48,621
  51,280
  54,062
  56,971
  60,014
  63,200
  66,535
  70,029
  73,688
  77,522
Debt-to-equity ratio
  1.146
  1.170
  1.190
  1.210
  1.220
  1.230
  1.240
  1.260
  1.260
  1.270
  1.280
  1.290
  1.290
  1.300
  1.310
  1.310
  1.320
  1.320
  1.330
  1.330
  1.330
  1.340
  1.340
  1.340
  1.350
  1.350
  1.350
  1.350
  1.360
  1.360
  1.360
Adjusted equity ratio
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417
  0.417

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  426
  245
  270
  296
  322
  350
  379
  409
  441
  473
  507
  597
  634
  672
  712
  754
  797
  842
  890
  939
  991
  1,044
  1,101
  1,160
  1,222
  1,286
  1,354
  1,425
  1,500
  1,578
  1,659
Depreciation, amort., depletion, $m
  519
  614
  662
  712
  764
  818
  874
  932
  992
  1,055
  1,120
  1,113
  1,184
  1,257
  1,334
  1,414
  1,497
  1,584
  1,674
  1,769
  1,867
  1,971
  2,078
  2,191
  2,309
  2,432
  2,562
  2,697
  2,838
  2,987
  3,142
Funds from operations, $m
  868
  859
  932
  1,008
  1,086
  1,168
  1,253
  1,341
  1,433
  1,528
  1,628
  1,710
  1,818
  1,930
  2,046
  2,167
  2,294
  2,426
  2,564
  2,708
  2,858
  3,015
  3,179
  3,351
  3,531
  3,719
  3,916
  4,122
  4,338
  4,564
  4,801
Change in working capital, $m
  -44
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -3
  -3
  -3
Cash from operations, $m
  912
  860
  933
  1,009
  1,087
  1,169
  1,254
  1,342
  1,434
  1,530
  1,629
  1,712
  1,819
  1,931
  2,048
  2,169
  2,296
  2,428
  2,566
  2,710
  2,860
  3,017
  3,182
  3,354
  3,533
  3,722
  3,919
  4,125
  4,341
  4,567
  4,805
Maintenance CAPEX, $m
  0
  -493
  -539
  -587
  -637
  -689
  -742
  -798
  -857
  -917
  -980
  -1,045
  -1,113
  -1,184
  -1,257
  -1,334
  -1,414
  -1,497
  -1,584
  -1,674
  -1,769
  -1,867
  -1,971
  -2,078
  -2,191
  -2,309
  -2,432
  -2,562
  -2,697
  -2,838
  -2,987
New CAPEX, $m
  -873
  -953
  -995
  -1,036
  -1,077
  -1,120
  -1,164
  -1,210
  -1,257
  -1,307
  -1,359
  -1,413
  -1,470
  -1,530
  -1,593
  -1,660
  -1,731
  -1,805
  -1,883
  -1,966
  -2,053
  -2,145
  -2,242
  -2,345
  -2,452
  -2,566
  -2,686
  -2,812
  -2,945
  -3,085
  -3,232
Cash from investing activities, $m
  -1,299
  -1,446
  -1,534
  -1,623
  -1,714
  -1,809
  -1,906
  -2,008
  -2,114
  -2,224
  -2,339
  -2,458
  -2,583
  -2,714
  -2,850
  -2,994
  -3,145
  -3,302
  -3,467
  -3,640
  -3,822
  -4,012
  -4,213
  -4,423
  -4,643
  -4,875
  -5,118
  -5,374
  -5,642
  -5,923
  -6,219
Free cash flow, $m
  -387
  -586
  -601
  -614
  -627
  -640
  -653
  -666
  -680
  -694
  -709
  -746
  -764
  -783
  -803
  -825
  -849
  -874
  -901
  -930
  -962
  -995
  -1,031
  -1,070
  -1,110
  -1,154
  -1,200
  -1,249
  -1,301
  -1,356
  -1,414
Issuance/(repayment) of debt, $m
  197
  658
  688
  716
  745
  775
  805
  837
  869
  904
  939
  977
  1,017
  1,058
  1,102
  1,148
  1,197
  1,248
  1,302
  1,360
  1,420
  1,484
  1,551
  1,621
  1,696
  1,775
  1,857
  1,945
  2,037
  2,133
  2,235
Issuance/(repurchase) of shares, $m
  806
  217
  222
  217
  211
  204
  197
  189
  181
  173
  165
  102
  93
  85
  76
  67
  59
  50
  42
  34
  25
  17
  8
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  957
  875
  910
  933
  956
  979
  1,002
  1,026
  1,050
  1,077
  1,104
  1,079
  1,110
  1,143
  1,178
  1,215
  1,256
  1,298
  1,344
  1,394
  1,445
  1,501
  1,559
  1,621
  1,696
  1,775
  1,857
  1,945
  2,037
  2,133
  2,235
Total cash flow (excl. dividends), $m
  558
  289
  309
  319
  329
  339
  349
  360
  371
  383
  395
  332
  346
  360
  375
  391
  407
  425
  443
  463
  483
  505
  528
  552
  586
  621
  658
  696
  736
  778
  821
Retained Cash Flow (-), $m
  -596
  -462
  -492
  -512
  -533
  -554
  -576
  -598
  -622
  -646
  -672
  -699
  -727
  -757
  -788
  -821
  -856
  -893
  -932
  -972
  -1,016
  -1,061
  -1,109
  -1,160
  -1,213
  -1,269
  -1,329
  -1,391
  -1,457
  -1,526
  -1,599
Prev. year cash balance distribution, $m
 
  11
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -162
  -183
  -193
  -204
  -215
  -227
  -238
  -251
  -264
  -277
  -366
  -381
  -397
  -413
  -431
  -449
  -468
  -488
  -510
  -532
  -556
  -582
  -608
  -627
  -648
  -671
  -695
  -721
  -748
  -777
Discount rate, %
 
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
 
  -149
  -154
  -147
  -140
  -131
  -121
  -111
  -101
  -90
  -79
  -87
  -73
  -61
  -50
  -41
  -32
  -25
  -19
  -14
  -10
  -7
  -5
  -3
  -2
  -1
  -1
  -1
  0
  0
  0
Current shareholders' claim on cash, %
  100
  98.8
  97.8
  96.8
  96.0
  95.2
  94.6
  94.0
  93.4
  93.0
  92.6
  92.3
  92.1
  91.9
  91.8
  91.7
  91.6
  91.5
  91.4
  91.4
  91.3
  91.3
  91.3
  91.3
  91.3
  91.3
  91.3
  91.3
  91.3
  91.3
  91.3

Digital Realty Trust, Inc., a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. It focuses on strategically located properties containing applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter users, including the information technology departments of Fortune 1000 companies, and financial services companies. The company’s property portfolio consists of Internet gateway properties, corporate datacenter properties, technology manufacturing properties, and regional or national offices of technology companies. As of December 31, 2008, Digital Realty’s portfolio consisted of 75 properties, including 62 located in North America and 13 located in Europe. Digital Realty Trust has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 2004 and is headquartered in San Francisco, California with additional offices in Boston, Chicago, Dallas, Los Angeles, New York, Northern Virginia, and Phoenix, as well as in Dublin, London, and Paris.

FINANCIAL RATIOS  of  Digital Realty Trust (DLR)

Valuation Ratios
P/E Ratio 43.5
Price to Sales 8.6
Price to Book 3.6
Price to Tangible Book
Price to Cash Flow 20.3
Price to Free Cash Flow 475
Growth Rates
Sales Growth Rate 21.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 781.8%
Cap. Spend. - 3 Yr. Gr. Rate 38.7%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 114.6%
Total Debt to Equity 114.6%
Interest Coverage 3
Management Effectiveness
Return On Assets 5.4%
Ret/ On Assets - 3 Yr. Avg. 4.7%
Return On Total Capital 4%
Ret/ On T. Cap. - 3 Yr. Avg. 3.2%
Return On Equity 8.9%
Return On Equity - 3 Yr. Avg. 7.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 64.4%
Gross Margin - 3 Yr. Avg. 63.7%
EBITDA Margin 55%
EBITDA Margin - 3 Yr. Avg. 54.5%
Operating Margin 23.2%
Oper. Margin - 3 Yr. Avg. 20.6%
Pre-Tax Margin 20.6%
Pre-Tax Margin - 3 Yr. Avg. 17%
Net Profit Margin 19.9%
Net Profit Margin - 3 Yr. Avg. 16.4%
Effective Tax Rate 2.3%
Eff/ Tax Rate - 3 Yr. Avg. 2.4%
Payout Ratio 142%

DLR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DLR stock intrinsic value calculation we used $2142 million for the last fiscal year's total revenue generated by Digital Realty Trust. The default revenue input number comes from 2016 income statement of Digital Realty Trust. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our DLR stock valuation model: a) initial revenue growth rate of 9.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.6%, whose default value for DLR is calculated based on our internal credit rating of Digital Realty Trust, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Digital Realty Trust.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of DLR stock the variable cost ratio is equal to 74.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $42 million in the base year in the intrinsic value calculation for DLR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.7% for Digital Realty Trust.

Corporate tax rate of 27% is the nominal tax rate for Digital Realty Trust. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the DLR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for DLR are equal to 479%.

Life of production assets of 20.8 years is the average useful life of capital assets used in Digital Realty Trust operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for DLR is equal to -0.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5096 million for Digital Realty Trust - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 159.571 million for Digital Realty Trust is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Digital Realty Trust at the current share price and the inputted number of shares is $18.6 billion.

RELATED COMPANIES Price Int.Val. Rating
COR CoreSite Realt 111.70 25.22  str.sell
DFT Dupont Fabros 63.16 3.08  str.sell
QTS QTS Realty Tru 54.20 3.89  str.sell
CONE CyrusOne 60.49 3.49  str.sell
MS Morgan Stanley 46.01 248.98  str.buy
PRU Prudential Fin 105.21 252.58  str.buy
AMZN Amazon.com 978.18 870.28  hold

COMPANY NEWS

▶ Digital Realty Announces Management Transition   [Aug-11-17 09:00AM  PR Newswire]
▶ Digital Realty Trust reports 2Q results   [Jul-27-17 09:53PM  Associated Press]
▶ Digital Realty Trust reports 2Q results   [05:09PM  Associated Press]
▶ [$$] Americas Hottest Properties: Data Centers and Cell Towers   [Jul-26-17 12:51AM  The Wall Street Journal]
▶ 3 Growth Dividend Stocks to Buy Now   [Jul-18-17 07:35PM  Motley Fool]
▶ [$$] The Growing Allure of Data-Center REITs   [Jun-17-17 01:07AM  Barrons.com]
▶ Company News for June 12, 2017   [10:15AM  Zacks]
▶ New Deal Creates Largest Data Center REIT   [Jun-09-17 06:18PM  Barrons.com]
▶ Digital Realty to buy DuPont Fabros in $7.6 billion deal   [03:59PM  American City Business Journals]
▶ Aligned Energy names former Digital Realty Trust exec to its new CEO position in DFW   [Jun-05-17 03:10PM  American City Business Journals]
▶ 3 Dividend Stocks for Ambitious Investors   [May-25-17 09:12AM  Motley Fool]
▶ Digital Realty Trust Earnings: Strong Growth and More   [Apr-28-17 04:02PM  Motley Fool]
▶ Digital Realty Trust reports 1Q results   [Apr-27-17 04:38PM  Associated Press]
▶ Investing In This Explosive REIT Sector   [Apr-20-17 10:39AM  Forbes]
▶ Squirreling Away REIT Dividends   [07:00AM  Forbes]
▶ These 3 Stocks Just Raised Their Dividends   [Mar-30-17 10:01AM  Motley Fool]
▶ Own the Cloud Without the Hard Cost of Hardware   [Mar-19-17 12:01PM  TheStreet.com]
▶ 6 Great Data Center REITs For 2017   [Mar-13-17 12:03PM  Motley Fool]
Stock chart of DLR Financial statements of DLR
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.