Intrinsic value of Digital Realty Trust - DLR

Previous Close

$123.39

  Intrinsic Value

$6.68

stock screener

  Rating & Target

str. sell

-95%

  Value-price divergence*

-28%

Previous close

$123.39

 
Intrinsic value

$6.68

 
Up/down potential

-95%

 
Rating

str. sell

 
Value-price divergence*

-28%

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 20.0

 

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
  9.90
  9.41
  8.97
  8.57
  8.21
  7.89
  7.60
  7.34
  7.11
  6.90
  6.71
  6.54
  6.38
  6.25
  6.12
  6.01
  5.91
  5.82
  5.74
  5.66
  5.60
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
Revenue, $m
  2,142
  2,354
  2,576
  2,807
  3,047
  3,297
  3,558
  3,828
  4,109
  4,402
  4,705
  5,021
  5,349
  5,691
  6,046
  6,416
  6,802
  7,203
  7,623
  8,060
  8,516
  8,993
  9,490
  10,011
  10,555
  11,124
  11,719
  12,342
  12,994
  13,677
  14,393
Variable operating expenses, $m
 
  1,756
  1,914
  2,079
  2,251
  2,429
  2,615
  2,808
  3,009
  3,217
  3,434
  3,584
  3,818
  4,062
  4,316
  4,580
  4,855
  5,142
  5,441
  5,753
  6,079
  6,419
  6,775
  7,146
  7,534
  7,941
  8,366
  8,810
  9,276
  9,764
  10,274
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
  1,799
  1,958
  2,124
  2,297
  2,477
  2,664
  2,858
  3,060
  3,269
  3,488
  3,639
  3,874
  4,120
  4,375
  4,641
  4,917
  5,206
  5,507
  5,820
  6,148
  6,490
  6,847
  7,220
  7,610
  8,019
  8,446
  8,892
  9,360
  9,850
  10,362
Operating income, $m
  496
  555
  618
  683
  750
  821
  894
  970
  1,049
  1,132
  1,217
  1,382
  1,474
  1,570
  1,671
  1,775
  1,884
  1,997
  2,116
  2,239
  2,368
  2,503
  2,643
  2,790
  2,944
  3,105
  3,274
  3,450
  3,635
  3,828
  4,030
EBITDA, $m
  1,196
  1,363
  1,494
  1,631
  1,773
  1,922
  2,076
  2,236
  2,403
  2,576
  2,756
  2,943
  3,138
  3,340
  3,551
  3,771
  4,000
  4,238
  4,487
  4,746
  5,017
  5,300
  5,595
  5,904
  6,227
  6,565
  6,919
  7,289
  7,676
  8,082
  8,507
Interest expense (income), $m
  217
  216
  242
  269
  297
  327
  358
  390
  423
  457
  493
  530
  569
  609
  651
  694
  740
  787
  836
  888
  941
  997
  1,056
  1,117
  1,180
  1,247
  1,317
  1,390
  1,466
  1,546
  1,630
Earnings before tax, $m
  442
  339
  376
  413
  453
  494
  536
  581
  627
  675
  724
  851
  905
  961
  1,020
  1,081
  1,144
  1,210
  1,279
  1,351
  1,427
  1,506
  1,588
  1,674
  1,764
  1,858
  1,957
  2,060
  2,168
  2,282
  2,401
Tax expense, $m
  10
  92
  101
  112
  122
  133
  145
  157
  169
  182
  196
  230
  244
  260
  275
  292
  309
  327
  345
  365
  385
  406
  429
  452
  476
  502
  528
  556
  585
  616
  648
Net income, $m
  426
  248
  274
  302
  331
  361
  392
  424
  458
  493
  529
  622
  661
  702
  744
  789
  835
  884
  934
  987
  1,042
  1,099
  1,159
  1,222
  1,288
  1,356
  1,428
  1,504
  1,583
  1,666
  1,752

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
  13,375
  14,634
  15,946
  17,313
  18,736
  20,215
  21,752
  23,349
  25,009
  26,734
  28,528
  30,393
  32,333
  34,352
  36,455
  38,646
  40,929
  43,310
  45,794
  48,386
  51,094
  53,923
  56,879
  59,970
  63,203
  66,585
  70,125
  73,832
  77,712
  81,777
Adjusted assets (=assets-cash), $m
  12,182
  13,375
  14,634
  15,946
  17,313
  18,736
  20,215
  21,752
  23,349
  25,009
  26,734
  28,528
  30,393
  32,333
  34,352
  36,455
  38,646
  40,929
  43,310
  45,794
  48,386
  51,094
  53,923
  56,879
  59,970
  63,203
  66,585
  70,125
  73,832
  77,712
  81,777
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
  11,276
  12,337
  13,444
  14,596
  15,795
  17,042
  18,338
  19,684
  21,084
  22,538
  24,050
  25,622
  27,258
  28,960
  30,733
  32,580
  34,505
  36,512
  38,606
  40,792
  43,074
  45,459
  47,951
  50,557
  53,283
  56,134
  59,119
  62,243
  65,515
  68,942
Working capital, $m
  0
  -12
  -13
  -14
  -15
  -16
  -18
  -19
  -21
  -22
  -24
  -25
  -27
  -28
  -30
  -32
  -34
  -36
  -38
  -40
  -43
  -45
  -47
  -50
  -53
  -56
  -59
  -62
  -65
  -68
  -72
Total debt, $m
  5,839
  6,540
  7,274
  8,039
  8,836
  9,665
  10,527
  11,423
  12,355
  13,322
  14,328
  15,374
  16,461
  17,592
  18,769
  19,995
  21,272
  22,603
  23,992
  25,440
  26,951
  28,530
  30,179
  31,902
  33,705
  35,589
  37,561
  39,625
  41,786
  44,048
  46,418
Total liabilities, $m
  7,097
  7,798
  8,532
  9,297
  10,094
  10,923
  11,785
  12,681
  13,613
  14,580
  15,586
  16,632
  17,719
  18,850
  20,027
  21,253
  22,530
  23,861
  25,250
  26,698
  28,209
  29,788
  31,437
  33,160
  34,963
  36,847
  38,819
  40,883
  43,044
  45,306
  47,676
Total equity, $m
  5,096
  5,578
  6,102
  6,650
  7,220
  7,813
  8,429
  9,070
  9,737
  10,429
  11,148
  11,896
  12,674
  13,483
  14,325
  15,202
  16,115
  17,067
  18,060
  19,096
  20,177
  21,306
  22,486
  23,719
  25,007
  26,356
  27,766
  29,242
  30,788
  32,406
  34,101
Total liabilities and equity, $m
  12,193
  13,376
  14,634
  15,947
  17,314
  18,736
  20,214
  21,751
  23,350
  25,009
  26,734
  28,528
  30,393
  32,333
  34,352
  36,455
  38,645
  40,928
  43,310
  45,794
  48,386
  51,094
  53,923
  56,879
  59,970
  63,203
  66,585
  70,125
  73,832
  77,712
  81,777
Debt-to-equity ratio
  1.146
  1.170
  1.190
  1.210
  1.220
  1.240
  1.250
  1.260
  1.270
  1.280
  1.290
  1.290
  1.300
  1.300
  1.310
  1.320
  1.320
  1.320
  1.330
  1.330
  1.340
  1.340
  1.340
  1.350
  1.350
  1.350
  1.350
  1.360
  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
  248
  274
  302
  331
  361
  392
  424
  458
  493
  529
  622
  661
  702
  744
  789
  835
  884
  934
  987
  1,042
  1,099
  1,159
  1,222
  1,288
  1,356
  1,428
  1,504
  1,583
  1,666
  1,752
Depreciation, amort., depletion, $m
  700
  808
  876
  948
  1,023
  1,101
  1,182
  1,266
  1,353
  1,444
  1,539
  1,562
  1,664
  1,770
  1,881
  1,996
  2,116
  2,241
  2,371
  2,507
  2,649
  2,797
  2,952
  3,114
  3,283
  3,460
  3,645
  3,839
  4,042
  4,254
  4,477
Funds from operations, $m
  868
  1,055
  1,151
  1,250
  1,354
  1,461
  1,574
  1,690
  1,811
  1,937
  2,068
  2,183
  2,325
  2,472
  2,625
  2,785
  2,951
  3,124
  3,305
  3,493
  3,690
  3,896
  4,111
  4,336
  4,571
  4,816
  5,074
  5,343
  5,625
  5,920
  6,229
Change in working capital, $m
  -44
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -4
Cash from operations, $m
  912
  1,056
  1,152
  1,251
  1,355
  1,463
  1,575
  1,691
  1,812
  1,938
  2,069
  2,185
  2,326
  2,474
  2,627
  2,786
  2,953
  3,126
  3,307
  3,496
  3,693
  3,898
  4,113
  4,338
  4,573
  4,819
  5,077
  5,346
  5,628
  5,923
  6,233
Maintenance CAPEX, $m
  0
  -666
  -732
  -801
  -873
  -948
  -1,026
  -1,107
  -1,191
  -1,278
  -1,369
  -1,464
  -1,562
  -1,664
  -1,770
  -1,881
  -1,996
  -2,116
  -2,241
  -2,371
  -2,507
  -2,649
  -2,797
  -2,952
  -3,114
  -3,283
  -3,460
  -3,645
  -3,839
  -4,042
  -4,254
New CAPEX, $m
  -873
  -1,015
  -1,061
  -1,107
  -1,152
  -1,199
  -1,247
  -1,296
  -1,347
  -1,399
  -1,454
  -1,512
  -1,572
  -1,636
  -1,702
  -1,773
  -1,847
  -1,925
  -2,007
  -2,094
  -2,186
  -2,283
  -2,385
  -2,492
  -2,606
  -2,725
  -2,852
  -2,984
  -3,124
  -3,272
  -3,427
Cash from investing activities, $m
  -1,299
  -1,681
  -1,793
  -1,908
  -2,025
  -2,147
  -2,273
  -2,403
  -2,538
  -2,677
  -2,823
  -2,976
  -3,134
  -3,300
  -3,472
  -3,654
  -3,843
  -4,041
  -4,248
  -4,465
  -4,693
  -4,932
  -5,182
  -5,444
  -5,720
  -6,008
  -6,312
  -6,629
  -6,963
  -7,314
  -7,681
Free cash flow, $m
  -387
  -625
  -642
  -656
  -670
  -684
  -698
  -711
  -725
  -739
  -754
  -791
  -808
  -826
  -846
  -867
  -890
  -914
  -941
  -969
  -1,000
  -1,033
  -1,068
  -1,106
  -1,146
  -1,189
  -1,235
  -1,284
  -1,335
  -1,390
  -1,448
Issuance/(repayment) of debt, $m
  197
  701
  734
  765
  797
  829
  862
  896
  931
  968
  1,006
  1,046
  1,087
  1,131
  1,177
  1,226
  1,277
  1,331
  1,388
  1,448
  1,512
  1,579
  1,649
  1,724
  1,802
  1,885
  1,972
  2,064
  2,161
  2,263
  2,370
Issuance/(repurchase) of shares, $m
  806
  245
  251
  245
  239
  233
  225
  217
  209
  200
  191
  126
  117
  107
  98
  88
  78
  69
  59
  49
  40
  30
  20
  11
  1
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  957
  946
  985
  1,010
  1,036
  1,062
  1,087
  1,113
  1,140
  1,168
  1,197
  1,172
  1,204
  1,238
  1,275
  1,314
  1,355
  1,400
  1,447
  1,497
  1,552
  1,609
  1,669
  1,735
  1,803
  1,885
  1,972
  2,064
  2,161
  2,263
  2,370
Total cash flow (excl. dividends), $m
  558
  321
  343
  354
  366
  378
  390
  402
  415
  428
  442
  381
  396
  412
  429
  447
  466
  485
  506
  528
  551
  576
  601
  628
  657
  696
  737
  780
  825
  872
  922
Retained Cash Flow (-), $m
  -596
  -493
  -525
  -547
  -570
  -593
  -617
  -641
  -666
  -692
  -719
  -748
  -778
  -809
  -842
  -877
  -913
  -952
  -993
  -1,036
  -1,081
  -1,129
  -1,180
  -1,233
  -1,289
  -1,348
  -1,410
  -1,476
  -1,545
  -1,618
  -1,695
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
 
  -161
  -182
  -193
  -204
  -215
  -227
  -239
  -251
  -264
  -277
  -367
  -381
  -397
  -413
  -430
  -448
  -467
  -487
  -508
  -530
  -553
  -578
  -604
  -632
  -653
  -673
  -696
  -720
  -746
  -774
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
 
  -148
  -153
  -147
  -140
  -131
  -122
  -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
  97.7
  96.7
  95.8
  95.0
  94.3
  93.7
  93.2
  92.7
  92.3
  92.0
  91.8
  91.6
  91.4
  91.3
  91.1
  91.0
  91.0
  90.9
  90.9
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8
  90.8

Digital Realty Trust, Inc. is a real estate investment trust (REIT). The Company is engaged in the business of owning, acquiring, developing and operating data centers. The Company is focused on providing data center and colocation solutions for domestic and international tenants across a range of industry verticals ranging from financial services, cloud and information technology services, to manufacturing, energy, healthcare and consumer products. As of December 31, 2016, its portfolio consisted of 145 operating properties, including 14 properties held as investments in unconsolidated joint ventures, of which 104 are located throughout the United States, 32 are located in Europe, four are located in Asia, three are located in Australia and two are located in Canada. It is a general partner of Digital Realty Trust, L.P. As of December 31, 2016, it owned an approximate 98.5% common general partnership interest in Digital Realty Trust, L.P.

FINANCIAL RATIOS  of  Digital Realty Trust (DLR)

Valuation Ratios
P/E Ratio 46.1
Price to Sales 9.2
Price to Book 3.9
Price to Tangible Book
Price to Cash Flow 21.5
Price to Free Cash Flow 503.1
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 63.4%
EBITDA Margin - 3 Yr. Avg. 61%
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 9.9% 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 15.4 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 162.434 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 $20.0 billion.

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COMPANY NEWS

▶ Digital Realty Trust Getting Closer To Key Technical Benchmark   [03:00AM  Investor's Business Daily]
▶ EXCLUSIVE: Phoenix's data center market continues strong growth   [Oct-04-17 04:45PM  American City Business Journals]
▶ Switch IPO: What Investors Need to Know   [Oct-02-17 07:03AM  Motley Fool]
▶ Why REITs (Even Data-Center REITs) Are Financial Stocks   [Oct-01-17 06:00AM  Motley Fool]
▶ Switch Inc: $4 bln valuation after IPO   [Sep-25-17 09:59AM  Reuters]
▶ Digital Realty Completes Merger With DuPont Fabros   [Sep-14-17 04:01PM  PR Newswire]
▶ Digital Realty Trust adding to its DFW bandwidth with new $1B complex   [Aug-25-17 06:00PM  American City Business Journals]
▶ 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]
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.

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