EQIX
Equinix, Inc.
$1,056.10
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Mild
·
Conviction
Fair Value
Trading 13.1% below fair value
You pay
$1,056.10
Bear
$990.13
Fair
$1,215.16
Bull
$1,440.19
Bear
$990.13
-6.2%
$34.62 FFO × 29x
Fair
$1,215.16
+15.1%
$34.62 FFO × 35x
Bull
$1,440.19
+36.4%
$34.62 FFO × 42x
Adjust Assumptions
35.1x
$
Key Value Driver
FFO/share ($34.62) × specialty P/FFO multiple
Implied Market Multiple
30.5x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (53 analysts)
$1246.25
Divergence from AlphaVal
2%
Summary
At $34.62 FFO/share with a 35x specialty REIT multiple, the base-case value is $1215.16 per share. Dividend yield: 1.9%.
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