Digital Realty Trust, Inc.

Valuation Analysis

About the Company

Digital Realty Trust, Inc. owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. The company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. As of March 31, 2026, the company's 309 data centers, including 89 data centers held as investments in unconsolidated entities, contain applications and operations critical to the day-to-day operations of technology industry and corporate enterprise data center customers. Digital Realty's portfolio is

Digital Realty Trust, Inc. Stock at a Glance

Digital Realty Trust, Inc. (DLR) is currently trading at $184.20 with a market capitalization of $65.9B. The trailing P/E ratio stands at 48.73x, with a forward P/E of 64.31x. The 52-week range spans from $146.23 to $208.14; the current price is 11.5% below the yearly high. Year-over-year revenue growth stands at +16.7%. The net profit margin stands at 21.82%.

💰 Dividend

Digital Realty Trust, Inc. pays an annual dividend of $4.88 per share, representing a yield of 2.65%. The payout ratio stands at 129.44%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

29 analysts rate Digital Realty Trust, Inc. (DLR) on consensus: Buy. The average price target is $218.72, implying +18.74% from the current price. Analyst price targets range from $180.00 to $250.00.

Digital Realty Trust, Inc.: The Investment Case in Detail

Digital Realty Trust, Inc. (DLR) operates in the Real Estate — specifically REIT - Specialty — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 16.7% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 67.6% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 55.34% gross margin and 17.19% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

At a PEG of 12.42, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 29.24x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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