DLR Digital Realty
too hard · 46
Owner-earnings value$133.45
Price$180.47
Margin of safety
-26.1%
Quality gate · 46/100
⚠ sub-hurdle returns (median roic 3% < 9%) · over-levered (net debt/EBITDA 4.2x > 4x)
Median ROIC3.4%
Gross margin55.5%
Net debt / EBITDA4.2x
FCF conversion246%
Share count / yr+5.7%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 2.55B |
| Owner-earnings yield | 3.7% |
| Free-cash-flow yield | 3.7% |
| Growth used (normalized) | 9.2% |
| Market-implied growth (reverse DCF) | 16.8% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.8% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 2.78B | 9.2% | 2.53B |
| 2 | 3.02B | 8.5% | 2.50B |
| 3 | 3.25B | 7.8% | 2.46B |
| 4 | 3.49B | 7.1% | 2.40B |
| 5 | 3.71B | 6.5% | 2.32B |
| 6 | 3.93B | 5.8% | 2.24B |
| 7 | 4.12B | 5.1% | 2.14B |
| 8 | 4.30B | 4.4% | 2.03B |
| 9 | 4.46B | 3.7% | 1.92B |
| 10 | 4.60B | 3.0% | 1.80B |
⚠ owner earnings approximated by free cash flow · Price pays for ~17%/yr owner-earnings growth over 10y (reverse DCF); model credits 9%.