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:
Below please find a table outlining a discounted cash flow forecast for DLR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Digital Realty Trust Inc ranked in the 8th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Digital Realty Trust Inc, consider:
The business' balance sheet suggests that 30% of the company's capital is sourced from debt; this is greater than 51.26% of the free cash flow producing stocks we're observing.
Digital Realty Trust Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 16.11% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 12.21% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Real Estate that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DLR, try RYN, RPT, SAFE, CPLG, and HPP.
Digital Realty's operating partnership Digital Realty Trust ([[DLR]] +0.7%) intends to redeem all of its outstanding 3.625% and 3.950% notes due 2022, pursuant to their option under the indenture governing the notes, dated as of September 24, 2012 and June 23, 2015 respectively.Redemption date is August 3, 2020 with applicable redemption...
Marking its expansion in Asia, Digital Realty ([[DLR]] +1.3%) will build a new, carrier-neutral data center in Hong Kong to be named Digital Realty Kin Chuen.It follows the recent groundbreaking for a data center in Seoul.The company entered Hong Kong in 2012 with the acquisition of Digital TKO, located in...
Digital Realty (NYSE: DLR), a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today that its operating partnership, Digital Realty Trust, L.P., has given notice of its intention to redeem all of its outstanding 3.625% notes due 2022, pursuant to its option under the indenture governing the 3.625% notes, dated as of September 24, 2012, and all of its outstanding 3.950% notes due 2022, pursuant to its option under the indenture governing the 3.950% notes, dated as of June 23, 2015. The redemption date is August 3, 2020, and the applicable redemption price is equal to par plus a make-whole premium, plus accrued and unpaid interest thereon to, but not including, the redemption date, in accordance with the terms of the ap...
Digital Realty (NYSE: DLR), a leading global provider of data centre, colocation and interconnection solutions, announced today the development of a new, carrier-neutral data centre in a purpose-built facility in Hong Kong – to be named Digital Realty Kin Chuen (HKG11). The move marks another significant expansion of PlatformDIGITAL™ across Asia Pacific, closely following the recent groundbreaking of Digital Realty's new data centre in Seoul, Korea. The Hong Kong facility will enable customers to rapidly scale digital transformation strategies by deploying critical infrastructure with a leading global data centre provider at the heart of a growing community of interest.