EQIX Equinix
too hard · 40
Owner-earnings value$300.63
Price$1,026.06
Margin of safety
-70.7%
Quality gate · 40/100
⚠ sub-hurdle returns (median roic 5% < 9%) · over-levered (net debt/EBITDA 4.7x > 4x)
Median ROIC4.8%
Gross margin51.5%
Net debt / EBITDA4.7x
FCF conversion24%
Share count / yr+2.0%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 1.53B |
| Owner-earnings yield | 1.5% |
| Free-cash-flow yield | -1.4% |
| Growth used (normalized) | 8.3% |
| Market-implied growth (reverse DCF) | 25.0% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.6% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 1.66B | 8.3% | 1.51B |
| 2 | 1.79B | 7.7% | 1.49B |
| 3 | 1.91B | 7.1% | 1.45B |
| 4 | 2.04B | 6.5% | 1.41B |
| 5 | 2.16B | 5.9% | 1.36B |
| 6 | 2.27B | 5.3% | 1.31B |
| 7 | 2.38B | 4.8% | 1.25B |
| 8 | 2.48B | 4.2% | 1.19B |
| 9 | 2.57B | 3.6% | 1.13B |
| 10 | 2.65B | 3.0% | 1.06B |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~25%/yr owner-earnings growth over 10y (reverse DCF); model credits 8%.