EQIX
Equinix, Inc.
$1,055.85
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Mild
·
Conviction
Fair Value
Trading 11.1% below fair value
You pay
$1,055.85
Bear
$968.11
Fair
$1,188.14
Bull
$1,408.16
Bear
$968.11
-8.3%
$34.64 FFO × 29x
Fair
$1,188.14
+12.5%
$34.64 FFO × 35x
Bull
$1,408.16
+33.4%
$34.64 FFO × 42x
Key Value Driver
FFO/share ($34.64) × specialty P/FFO multiple
Implied Market Multiple
30.5x
Summary
Our base-case estimate uses P/FFO × Specialty REIT Multiple. We then blend that result with the average analyst price target of $1136.87 from 52 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $1188.14 per share.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
The 1.9% yield is low for a real estate company — investors are paying up because they expect above-average growth.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify