EQIX
Equinix, Inc.
$1,008.02
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Moderate
·
Conviction
Fair Value
Trading 15.3% below fair value
You pay
$1,008.02
Bear
$969.78
Fair
$1,190.19
Bull
$1,410.60
Bear
$969.78
-3.8%
$34.64 FFO × 29x
Fair
$1,190.19
+18.1%
$34.64 FFO × 35x
Bull
$1,410.60
+39.9%
$34.64 FFO × 42x
Key Value Driver
FFO/share ($34.64) × specialty P/FFO multiple
Implied Market Multiple
29.1x
Summary
Our base-case estimate uses P/FFO × Specialty REIT Multiple. We then blend that result with the average analyst price target of $1142.75 from 52 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $1190.19 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 2.0% 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