DLR Investors, You Need to Know These Facts Today.

Now trading at a price of $98.22, Digital Realty Trust has moved 0.1% so far today on a volume of 306,931, compared to its average of 2,164,969. In contrast, the S&P 500 index moved 1.0%.

Digital Realty Trust shares moved -39.1% over the last 52 weeks, with a high of $162.22 and a low of $85.76. During this time, the stock lagged the S&P 500 index by -20.5%. As of January 2022, the company's 50-day average price is $104.3392. Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITALR, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture PDxTM solution methodology for scaling digital business and efficiently managing data gravity challenges. The large-cap Real Estate company has 3,030 full time employees and is based in Austin, TX. Digital Realty Trust has returned a 4.9% dividend yield over the last 12 months.

Snapshot of the Company's Highly Leveraged Balance Sheet - Excessively High Debt to EBITDA Ratio:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $3,209 $3,904 $4,428
Revenue Growth n/a 21.64% 13.43%
Operating Margins 19.6% 17.2% 17.2%
Operating Margins Growth n/a -12.24% 0.0%
Net Margins 18.07% 9.13% 38.6%
Net Margins Growth n/a -49.47% 322.78%
Earnings Per Share $2.35 $1.0 $5.94
EPS Growth n/a -57.45% 494.0%
Free Cash Flow (MM) $1,514 $1,707 $1,702
FCF Growth n/a 12.73% -0.25%
Net Debt / EBITDA 5.38 6.6 5.77

Digital Realty Trust Is Reasonably Priced:

Compared to the Real Estate sector's average of 27.16, Digital Realty Trust has a trailing twelve month price to earnings (P/E) ratio of 20.1 and, based on its EPS guidance of 1.21, an expected P/E ratio of 81.2.

The firm's price to earnings growth (PEG) is -1.74, which tells us that the company is expected to have negative growth in the future.

Digital Realty Trust is undervalued in terms of its assets because its price to book (P/B) ratio is 1.7 compared to its sector average of 2.39. The company's shares are currently trading 56.0% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 3.1 * 56.806) = $62.95

Digital Realty Trust Is the Subject of Mixed Market Indicators:

20 analysts are following Digital Realty Trust and have set target prices ranging from $81 to $175 per share. On average, they have given the company a rating of buy. At the current price of $98.22, DLR is trading -20.85% away from its average analyst target price of $124.1 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an average amount of shares sold short since 4.0% of the company's shares are tied to short positions. Institutions own 98.5% of Digital Realty Trust's shares, while the insider ownership rate stands at 0.11%. The biggest shareholder is the Vanguard Group, Inc. with a 16% stake in the company worth approximately $4,461,272,928.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.