IRM
Iron Mountain Incorporated
$114.72
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 39.8% below fair value
You pay
$114.72
Bear
$158.82
Fair
$190.43
Bull
$222.05
Bear
$158.82
+38.4%
$4.04 FFO × 25x
Fair
$190.43
+66.0%
$4.04 FFO × 31x
Bull
$222.05
+93.6%
$4.04 FFO × 36x
Adjust Assumptions
30.7x
$
Key Value Driver
FFO/share ($4.04) × specialty P/FFO multiple
Implied Market Multiple
28.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (21 analysts)
$142.75
Divergence from AlphaVal
33%
Summary
At $4.04 FFO/share with a 31x specialty REIT multiple, the base-case value is $190.43 per share. Dividend yield: 3.0%. DDM cross-check: $345.81.
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.
Dividend-based valuation: $345.81 (82% above our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $142.75 (from 21 analysts). Our estimate is 33% above the consensus -- consider that gap carefully.
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