Digital Realty Trust, Inc. (DLR) Stock Valuation — PE Analysis
REIT - Specialty · NYSE
Current Price
$175.64
PE Ratio (TTM)
83.2x
Intrinsic Value
$149.93
-17.1% margin of safety
COMPETITIVE MOAT
↑Global Scale and Network Effects
Digital Realty's extensive global footprint and interconnected data centers create a powerful network effect. Customers benefit from seamless connectivity and access to a vast ecosystem of partners.
↑High Switching Costs for Enterprise Clients
Migrating critical IT infrastructure from a colocation provider like Digital Realty involves significant time, expense, and operational disruption. This locks in enterprise customers.
↑Strategic Connectivity Hubs
New cable landing stations, like the one in Los Angeles, enhance Digital Realty's position as a critical nexus for global data flow. This strengthens its value proposition for connectivity-dependent businesses.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a REIT, Digital Realty relies on debt financing. Rising interest rates increase borrowing costs, potentially impacting profitability and dividend sustainability.
↓Customer Concentration Risk
While not explicitly stated, a significant portion of revenue could be tied to a few large enterprise clients. Loss of a major customer would materially impact financial performance.
↓Geopolitical and Regulatory Uncertainty
Global operations expose Digital Realty to varying regulatory environments and geopolitical risks. Changes in data sovereignty laws or international relations could disrupt business.
Base case
DLR base case PE valuation
A base case PE valuation for DLR estimates a fair value of about $149.93 per share, against a current price of $175.64. The model assumes 14.4% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$149.93
Margin of safety
-17.1%
Expected annual return
-3.1%
Base case assumptions: 14.4% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-08.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DLR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Digital Realty Trust, Inc. respond.
Open PE Calculator for DLRCompany Overview
Digital Realty Trust, Inc. owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. The company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. As of March 31, 2026, the company's 309 data centers, including 89 data centers held as investments in unconsolidated entities, contain applications and operations critical to the day-to-day operations of technology industry and corporate enterprise data center customers. Digital Realty's portfolio is comprised of approximately 3.0 gigawatts of IT capacity, as well as approximately 6.3 gigawatts of buildable IT capacity under active development and held for future development, located throughout North America, Europe, South America, Asia, Australia, and Africa. Digital Realty Trust, Inc. was established and incorporated on March 09, 2004 in Maryland and is based in Austin, Texas.
Financial Metrics — DLR PE Stock Valuation Data
PE Ratio (TTM)
83.2x
PEG Ratio
n/m
Earnings Yield
1.28%
ROE (TTM)
3.3%
Revenue/Share (TTM)
$19.34
Dividend Yield
2.70%
Debt/Equity
0.67x
Frequently Asked Questions
What is the PE ratio of DLR?
The trailing twelve-month PE ratio of DLR reflects how much investors pay per dollar of Digital Realty Trust, Inc.'s earnings. This metric is most useful when compared to REIT - Specialty peers and the company's own historical range.
Is DLR overvalued based on PE ratio?
DLR's PE of 83.2x combined with a PEG ratio of -1.83 provides a growth-adjusted perspective. DLR has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Specialty, a DCF analysis may be more appropriate.
How do I value DLR stock using PE ratio?
To value Digital Realty Trust, Inc. using PE: (1) Compare the current PE (83.2x) against the REIT - Specialty median to assess relative pricing, (2) check the PEG ratio (-1.83) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of DLR?
DLR's PEG ratio is -1.83, calculated by dividing the PE ratio (83.2x) by the expected earnings growth rate. Because DLR has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DLR stock valuation?
PE ratio gives a quick relative read — how DLR is priced versus REIT - Specialty peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See DLR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Real Estate valuationsP/E and DCF value DLR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-08. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.