Using the industry peer median P/E multiple (trailing + forward), Digital Realty Trust, Inc. (DLR) has a fair value of $91.23 based on 7 comparable companies in the REIT - Office industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Digital Realty Trust, Inc.DLR | 61,855 | 49.1x | 91.0x |
| Equinix, Inc.EQIX | 95,224 | 70.4x | 59.8x |
| American Tower CorporationAMT | 78,686 | 31.2x | 26.0x |
| Simon Property Group, Inc.SPG | 59,029 | 12.8x | 27.0x |
| Realty Income CorporationO | 56,333 | 51.6x | 37.0x |
| Public StoragePSA | 47,269 | 29.9x | 27.1x |
| CBRE Group, Inc.CBRE | 40,074 | 35.0x | 17.9x |
| Crown Castle Inc.CCI | 33,891 | 76.2x | 36.9x |
| Industry Median | 35.0x | 27.1x | |
| (*) Profit after tax | 1,309 | 679 | |
| Equity Value | 45,770 | 18,380 | |
| (/) Outstanding shares | 352 | 352 | |
| Fair Price | $130 | $52 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.