IRM
Iron Mountain Incorporated
$126.46
Real Estate Investment Trust
85%
P/FFO × Specialty REIT Multiple
Mild
·
Conviction
Fair Value
Trading 14.6% below fair value
You pay
$126.46
Bear
$123.05
Fair
$148.14
Bull
$173.23
Bear
$123.05
-2.7%
$3.93 FFO × 25x
Fair
$148.14
+17.1%
$3.93 FFO × 31x
Bull
$173.23
+37.0%
$3.93 FFO × 36x
Key Value Driver
FFO/share ($3.93) × specialty P/FFO multiple
Implied Market Multiple
32.2x
Summary
Our base-case estimate uses P/FFO × Specialty REIT Multiple. We then blend that result with the average analyst price target of $132.33 from 20 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $148.14 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.
Dividend-based valuation: $230.11 (50% above our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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