REIT - Office · NYSE
Current Price
$194.56
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Digital Realty Trust, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITALR, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture PDxTM solution methodology for scaling digital business and efficiently managing data gravity challenges. Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with more than 284 facilities in 48 metros across 23 countries on six continents.
ROIC (TTM)
1.9%
ROE (TTM)
6.0%
FCF Yield
0.35%
Based on trailing twelve-month data, DLR shows a free cash flow per share of N/A and a ROIC of 1.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 0.35% are important context metrics when evaluating DLR's stock valuation relative to peers.
The intrinsic value of DLR depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether DLR is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $194.56. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Digital Realty Trust, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on REIT - Office industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting DLR's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Digital Realty Trust, Inc., this means projecting how much free cash flow the REIT - Office will produce over the next 5-10 years, then discounting those amounts to today's dollars. DLR's ROIC of 1.9% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DLR, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
