IRM
Iron Mountain Incorporated
$116.86
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 37.9% below fair value
You pay
$116.86
Bear
$156.93
Fair
$188.12
Bull
$219.30
Bear
$156.93
+34.3%
$3.93 FFO × 25x
Fair
$188.12
+61.0%
$3.93 FFO × 31x
Bull
$219.30
+87.7%
$3.93 FFO × 36x
Adjust Assumptions
30.7x
$
Key Value Driver
FFO/share ($3.93) × specialty P/FFO multiple
Implied Market Multiple
29.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (21 analysts)
$146.00
Divergence from AlphaVal
29%
Summary
At $3.93 FFO/share with a 31x specialty REIT multiple, the base-case value is $188.12 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 (84% above our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $146.00 (from 21 analysts). Our estimate is 29% 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