Digital Realty Trust, Inc. (DLR) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Real Estate · REIT - Specialty
Is Digital Realty Trust, Inc. a safe investment right now?
Digital Realty Trust, Inc. is in the Real Estate sector — Altman Z-Score does not apply to this type of company. Our fair value estimate is $200.76 (Fairly Valued).
Why the Altman Z-Score does not apply to Digital Realty Trust, Inc.
The Altman Z-Score is designed for manufacturing and non-financial companies. It uses ratios like Working Capital / Total Assets and Revenue / Total Assets that produce misleading results for Real Estate companies.
- Banks hold massive assets (loans) that inflate Total Assets, making WC/TA nearly zero — a false distress signal
- Utilities carry high regulated debt by design — the model misreads leverage as risk
- REITs use Funds From Operations (FFO), not Free Cash Flow — standard cash flow analysis doesn't apply
Altman Z-Score is designed for manufacturing companies and does not apply to banks, utilities, or REITs.
Note: A sector-specific financial health model for Real Estate companies is planned for a future update.
What is Digital Realty Trust, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Analyst Consensus Target | $200.76 | 29 Wall Street analysts |
| Analyst High / Low | $225.00 / $170.00 | Range of analyst price targets |
| Price / Book | 3.11x | Current market valuation vs book value |
| Return on Equity | 5.5% | Profitability relative to shareholder equity |
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Why standard moat analysis does not apply to Digital Realty Trust, Inc.
Our standard moat model uses ROIC stability, gross margin trends, and switching costs — metrics designed for product and service companies. Real Estate companies compete on fundamentally different dimensions.
- Banks — moat comes from deposit cost advantage, net interest margin stability, and fee income diversification
- Utilities — moat is a regulatory monopoly with guaranteed rate of return on invested capital
- REITs — moat comes from property portfolio quality, location, tenant mix, and cap rate advantages
Standard moat analysis (ROIC/gross margin/switching costs) does not reliably apply to Real Estate companies. Banks compete on net interest margin, utilities on regulated returns, and REITs on occupancy and cap rates.
Note: A sector-specific competitive analysis for Real Estate companies is planned for a future update.
Is Digital Realty Trust, Inc.'s dividend safe?
Can Digital Realty Trust, Inc. afford its dividend?
Payout ratio is 136.3%. FCF covers the dividend 1.1x. 23 consecutive years of payments.
Digital Realty Trust, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $6.1B | $5.6B | $4.7B | Rising |
| Net Income | $1.3B | $0.6B | $0.4B | Rising |
| Free Cash Flow | $2.4B | $2.3B | $1.7B | Rising |
| Gross Margin | 55.4% | 54.6% | 57.0% | Stable |
Recent events that affect our DLR analysis
DLR earnings report scheduled
Upcoming report. Revenue estimate: $1.60B. Our current Fair Value: $200.76 — a significant beat or miss could shift this estimate.
DLR analyst consensus: 76% bullish (25 of 33 analysts)
5 Strong Buy, 20 Buy, 7 Hold, 0 Sell, 1 Strong Sell. Consensus target: $200.76 (0.0% downside). Compare with our independent Fair Value: $200.76.
DLR paid $1.2200/share dividend
Dividend Safety Grade: C. Payout ratio: 136.3%.
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DLR beat EPS estimates by 2.2%
Reported EPS: $0.40 vs estimate $0.39. Earnings strength supports our Fair Value of $200.76 (0.0% below current price).
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR paid $1.2200/share dividend
Dividend Safety Grade: C. Payout ratio: 136.3%.
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DLR beat EPS estimates by 46.5%
Reported EPS: $0.34 vs estimate $0.23. Earnings strength supports our Fair Value of $200.76 (0.0% below current price).
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR paid $1.2200/share dividend
Dividend Safety Grade: C. Payout ratio: 136.3%.
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DLR beat EPS estimates by 710.9%
Reported EPS: $2.94 vs estimate $0.36. Earnings strength supports our Fair Value of $200.76 (0.0% below current price).
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR paid $1.2200/share dividend
Dividend Safety Grade: C. Payout ratio: 136.3%.
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DLR beat EPS estimates by 59.0%
Reported EPS: $0.38 vs estimate $0.24. Earnings strength supports our Fair Value of $200.76 (0.0% below current price).
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR paid $1.2200/share dividend
Dividend Safety Grade: C. Payout ratio: 136.3%.
DLR filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DLR beat EPS estimates by 13.3%
Reported EPS: $0.29 vs estimate $0.26. Earnings strength supports our Fair Value of $200.76 (0.0% below current price).
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DLR filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Digital Realty Trust, Inc.
What is Digital Realty Trust, Inc. stock price today?
Digital Realty Trust, Inc. (DLR) stock price is $200.86 as of the latest market close, traded on the NYSE exchange.
What does Digital Realty Trust, Inc. do?
Digital Realty Trust, Inc. (Digital Realty or the company) owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. (the operating partnership).
What is Digital Realty Trust, Inc. market cap?
Digital Realty Trust, Inc. has a market capitalization of $71.33B, classifying it as a large-cap stock in the Real Estate sector.
What sector and industry is DLR in?
Digital Realty Trust, Inc. operates in the Real Estate sector, specifically within the REIT - Specialty industry. It trades on the NYSE under the ticker symbol DLR.
Is DLR stock overvalued or undervalued?
Based on our valuation model, Digital Realty Trust, Inc. trades 0.1% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $200.76
- Current Price: $200.86
- Valuation Zone: Fairly Valued
What is DLR stock forecast and analyst target price?
Based on 29 Wall Street analysts, the consensus price target for Digital Realty Trust, Inc. is $200.76, implying downside of 0.0% from the current price.
- Analyst High Target: $225.00
- Analyst Low Target: $170.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Digital Realty Trust, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Digital Realty Trust, Inc.:
- Revenue growth (current year est.): 9.8%
- EPS growth (current year est.): 123.9%
- Revenue growth (next year est.): 10.9%
- EPS growth (next year est.): -8.2%
What are Digital Realty Trust, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $6.1B | Rising |
| Net Income | $1.3B | Rising |
| Free Cash Flow | $2.4B | Rising |
| Gross Margin | 55.4% | Stable |
What is DLR's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 56.1x
- Forward P/E (next 12 months est.): 62.1x
How volatile is DLR stock?
Digital Realty Trust, Inc. has a beta of 1.09, meaning it is roughly in line with overall market volatility. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Digital Realty Trust, Inc. have?
Digital Realty Trust, Inc.'s balance sheet shows:
- Total Cash: $3.49B
- Total Debt: $20.29B
- Net Cash Position: $-16.80B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Digital Realty Trust, Inc.'s free cash flow?
Digital Realty Trust, Inc. generated $1.96B in trailing twelve-month free cash flow (from $2.41B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Digital Realty Trust, Inc. pay a dividend, and is it safe?
Yes, Digital Realty Trust, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.4%
- Payout Ratio: 136.3%
- Consecutive Years Paid: 23
- 5-Year Dividend Growth: -23.4%
- FairValueLabs Safety Grade: C
Is Digital Realty Trust, Inc. financially healthy?
The Altman Z-Score — the standard bankruptcy prediction model — is not applicable to Real Estate companies like Digital Realty Trust, Inc.. The formula uses ratios designed for manufacturing firms that produce misleading results for banks, utilities, and REITs.
Does Digital Realty Trust, Inc. have a competitive moat?
Our standard moat model (based on ROIC, gross margins, and switching costs) does not apply to Real Estate companies. These firms compete on fundamentally different dimensions such as regulatory advantages, deposit cost structures, or property portfolios.
What is DLR's return on equity (ROE)?
Digital Realty Trust, Inc.'s return on equity is 5.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy DLR stock?
DLR shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol DLR
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is DLR a value stock or speculative?
FairValueLabs classifies Digital Realty Trust, Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Digital Realty Trust, Inc.?
The current CEO of Digital Realty Trust, Inc. is Mr. Andrew P. Power.
What is DLR's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $3.58
- Forward EPS (next 12 months est.): $3.24
- Analyst consensus EPS (this year): $3.53
- Analyst consensus EPS (next year): $3.24
Other Real Estate companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
DLR analysis methodology: How we calculate fair value, Z-Scores, and moat ratings