REIT - Specialty · NYSE
Current Price
$114.52
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Iron Mountain Incorporated with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across approximately 1,450 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working.
ROIC (TTM)
4.4%
ROE (TTM)
-17.4%
FCF Yield
-2.73%
Based on trailing twelve-month data, IRM shows a free cash flow per share of N/A and a ROIC of 4.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -2.73% are important context metrics when evaluating IRM's stock valuation relative to peers.
The intrinsic value of IRM 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 IRM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $114.52. 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 Iron Mountain Incorporated: (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 - Specialty industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting IRM'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 Iron Mountain Incorporated, this means projecting how much free cash flow the REIT - Specialty will produce over the next 5-10 years, then discounting those amounts to today's dollars. IRM's ROIC of 4.4% 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 IRM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
