Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 2.9% dividend yield, Digital Realty Trust, Inc. has a fair value of $15.46 based on NTM EPS (FY2026) of $1.93. The current PEG ratio is 125.77.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is unreliable for companies with declining earnings.
| EPS Growth RateForward | -2.1% |
| Dividend Yield | +2.9% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $1.93 |
| Fair Value | $15.46 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.58 | — | — |
| FY2026E | $1.93 | -46.0% | 20 |
| FY2027E | $2.16 | +11.6% | 20 |
| FY2028E | $2.57 | +19.1% | 15 |
| FY2029E | $3.31 | +28.9% | 11 |
| FY2030E | $3.21 | -3.0% | 7 |
5Y Forward EPS CAGR: -2.1%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $1.7B | $5.94 | — |
| FY2022 | $377.7M | $1.11 | -81.3% |
| FY2023 | $948.8M | $3.00 | +170.3% |
| FY2024 | $602.5M | $1.61 | -46.3% |
| FY2025 | $1.3B | $3.58 | +122.4% |
4Y Historical EPS CAGR: -11.9%