Digital Realty (DLR)
Real Estate · NYSE · US
Fundamentals
Valuation and ratings
Digital Realty trades at $173.60, which is 16% above the $145.15 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 71 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 47.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Digital Realty
Digital Realty Trust, Inc. brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. Platform Digital, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives customers access to the connected data communities that matter to them through a global footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. Digital Realty Trust, Inc. was established and incorporated on March 09, 2004 in Maryland and is based in Austin, Texas.
DLR passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
16 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Capital Research Global, Capital Research Global Investors$288.36M · 0.0% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$194.57M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$96.10M · 0.0% of book
- Joel Greenblatt, Gotham Asset Management, LLC$52.72M · 0.2% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$50.47M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Digital Realty (DLR) undervalued?
Against our discounted cash flow estimate of $145.15, DLR at $173.60 is 16% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own DLR?
16 of the institutions we track reported a position in DLR in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is DLR's P/E ratio?
DLR trades at 47.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for DLR, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.