Digital Realty Trust (DLR) has garnered attention due to recent share price movements, exhibiting short-term pressure but long-term resilience. While one valuation narrative suggests the stock is overvalued at $175.68 compared to a fair value of $110.45, a discounted cash flow model indicates it may be trading at a discount with a future cash flow value of $246.74. Investors are left to weigh these contrasting valuations, along with risks like higher interest costs and potential overcapacity in the data center market.
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Reassessing Digital Realty (DLR) Valuation As Recent Share Moves Contrast With Long Term Returns
Digital Realty Trust (DLR) has garnered attention due to recent share price movements, exhibiting short-term pressure but long-term resilience. While one valuation narrative suggests the stock is overvalued at $175.68 compared to a fair value of $110.45, a discounted cash flow model indicates it may be trading at a discount with a future cash flow value of $246.74. Investors are left to weigh these contrasting valuations, along with risks like higher interest costs and potential overcapacity in the data center market.