Digital Realty Trust, Inc. (DLR) Stock Valuation — PE Analysis
REIT - Specialty · NYSE
Current Price
$184.20
PE Ratio (TTM)
46.1x
Intrinsic Value
$111.05
-65.9% margin of safety
COMPETITIVE MOAT
↑Global Network Scale
Digital Realty's extensive global footprint, now including Malaysia, creates a significant barrier to entry. This interconnectedness allows seamless deployment of digital infrastructure worldwide.
↑AI and Cloud Demand
The company benefits from strong, sustained demand for data center capacity driven by AI and cloud computing. This secular trend fuels its growth and backlog.
↑Strategic Capacity Expansion
Proactive expansion of data center capacity globally, evidenced by new operations in Malaysia, positions Digital Realty to capture future market needs.
INVESTMENT RISKS
↓Valuation Concerns
While stock has rallied, DCF analysis suggests potential overvaluation. Investors should monitor if current price reflects intrinsic value.
↓Intense Competition
The data center market is highly competitive. New entrants and existing players constantly vie for market share and customer contracts.
↓Interest Rate Sensitivity
As a REIT, Digital Realty is sensitive to interest rate fluctuations. Rising rates can increase borrowing costs and impact profitability.
Base case
DLR base case PE valuation
A base case PE valuation for DLR estimates a fair value of about $111.05 per share, against a current price of $184.2. The model assumes -3.1% annual earnings growth, a 46x target PE multiple, and a 10% discount rate.
Intrinsic Value
$111.05
Margin of safety
-65.9%
Expected annual return
-9.6%
Base case assumptions: -3.1% annual earnings growth, 46x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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 empowers the world's foremost enterprises and service providers by offering a comprehensive suite of data center, co-location, and interconnection solutions. Central to their offerings is PlatformDIGITAL®, a proprietary global data center platform that furnishes clients with a dependable infrastructure and a well-established methodology, Pervasive Datacenter Architecture (PDx™). This approach is designed to facilitate the scaling of digital businesses and adeptly manage the intricate demands posed by data gravity. Furthermore, Digital Realty boasts an expansive global data center network, comprising over 284 facilities in 48 metropolitan areas across 23 countries on six continents, ensuring customers can access crucial digital ecosystems and connectivity points vital to their operations.
Financial Metrics — DLR PE Stock Valuation Data
PE Ratio (TTM)
46.1x
PEG Ratio
0.19
Earnings Yield
2.17%
ROE (TTM)
6.0%
Revenue/Share (TTM)
$18.60
Dividend Yield
2.65%
Debt/Equity
0.82x
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 46.1x combined with a PEG ratio of 0.19 provides a growth-adjusted perspective. A PEG below 1.0 suggests DLR may be undervalued relative to its earnings growth rate. 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 (46.1x) against the REIT - Specialty median to assess relative pricing, (2) check the PEG ratio (0.19) 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 0.19, calculated by dividing the PE ratio (46.1x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.