REIT - Industrial · NYSE
Current Price
$138.82
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Prologis, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2020, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 984 million square feet (91 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.
ROIC (TTM)
3.6%
ROE (TTM)
7.0%
FCF Yield
3.87%
Based on trailing twelve-month data, PLD shows a free cash flow per share of N/A and a ROIC of 3.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.87% are important context metrics when evaluating PLD's stock valuation relative to peers.
The intrinsic value of PLD 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 PLD is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $138.82. 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 Prologis, 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 - Industrial industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting PLD'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 Prologis, Inc., this means projecting how much free cash flow the REIT - Industrial will produce over the next 5-10 years, then discounting those amounts to today's dollars. PLD's ROIC of 3.6% 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 PLD, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
