Digital Realty Trust, Inc. logo DLR - Digital Realty Trust, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
1
BUY 28
HOLD 18
SELL 1
STRONG
SELL
0
| PRICE TARGET: $213.92 DETAILS
HIGH: $235.00
LOW: $180.00
MEDIAN: $215.00
CONSENSUS: $213.92
UPSIDE: 18.57%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Real Estate Investment Trust 85% confidence

Primary model: P/FFO × Industrial REIT Multiple

Valuation Signal Fair Value Mild
Trading 11.8% below fair value
Current Price $180.41
Bear Case $167.98 6.9% downside ($167.98 - $180.41) / $180.41 = -6.9% $8.96 FFO × 23x
Fair Value $204.47 13.3% upside ($204.47 - $180.41) / $180.41 = 13.3% $8.96 FFO × 29x
Bull Case $240.96 33.6% upside ($240.96 - $180.41) / $180.41 = 33.6% $8.96 FFO × 34x

Adjust Assumptions

28.6x
8.96$

Key Value Driver

FFO/share ($8.96) × industrial P/FFO multiple

Implied Market Multiple 20.1x

Plain-Language Summary

Our base-case estimate uses P/FFO × Industrial REIT Multiple. We then blend that result with the average analyst price target of $213.92 from 48 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $204.47 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: $70.41 (65% below 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