Digital Realty Trust engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. It focuses on strategically located properties containing applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter users, including the information technology departments of Fortune 1000 companies, and financial services companies. The company was founded in 2004 and is based in San Francisco, California
DLR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Digital Realty Trust Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Digital Realty Trust Inc ranked in the 0th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for DLR, they are:
The company's compound free cash flow growth rate over the past 4.32 years comes in at -0.62%; that's greater than just 1.46% of US stocks we're applying DCF forecasting to.
Relative to other stocks in its sector (Real Estate), Digital Realty Trust Inc has a reliance on debt greater than only 13.69% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BFS, HPP, LXP, MGP, and RPT can be thought of as valuation peers to DLR, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.