Digital Realty Current Valuation vs. Net Income
| DLR Stock | USD 185.04 0.87 0.47% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.74 | 0.5256 |
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| Operating Profit Margin | 0.091 | 0.0958 |
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| Pretax Profit Margin | 0.12 | 0.1873 |
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For Digital Realty profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Digital Realty to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Digital Realty Trust utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Digital Realty's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Digital Realty Trust over time as well as its relative position and ranking within its peers.
Digital |
Digital Realty's Revenue Breakdown by Earning Segment
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Is Specialized REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Digital Realty. If investors know Digital will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Digital Realty listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.96) | Dividend Share 4.88 | Earnings Share 1.24 | Revenue Per Share 16.985 | Quarterly Revenue Growth 0.016 |
The market value of Digital Realty Trust is measured differently than its book value, which is the value of Digital that is recorded on the company's balance sheet. Investors also form their own opinion of Digital Realty's value that differs from its market value or its book value, called intrinsic value, which is Digital Realty's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Digital Realty's market value can be influenced by many factors that don't directly affect Digital Realty's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Digital Realty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Digital Realty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Digital Realty's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Digital Realty Trust Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Digital Realty's current stock value. Our valuation model uses many indicators to compare Digital Realty value to that of its competitors to determine the firm's financial worth. Digital Realty Trust is rated as one of the top companies in current valuation category among its peers. It is rated # 3 in net income category among its peers making up about 0.01 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Digital Realty Trust is roughly 82.36 . At this time, Digital Realty's Net Income is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Digital Realty by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Digital Current Valuation vs. Competition
Digital Realty Trust is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Real Estate industry is currently estimated at about 224 Billion. Digital Realty totals roughly 78.27 Billion in current valuation claiming about 35% of equities listed under Real Estate industry.
Digital Net Income vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Digital Realty |
| = | 78.27 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Digital Realty |
| = | 950.31 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Digital Net Income Comparison
Digital Realty is currently under evaluation in net income category among its peers.
Digital Realty Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Digital Realty, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Digital Realty will eventually generate negative long term returns. The profitability progress is the general direction of Digital Realty's change in net profit over the period of time. It can combine multiple indicators of Digital Realty, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -6 B | -5.7 B | |
| Operating Income | 524.5 M | 349.9 M | |
| Income Before Tax | 1 B | 1.1 B | |
| Net Income | 950.3 M | 997.8 M | |
| Income Tax Expense | 75.6 M | 79.4 M | |
| Net Income Applicable To Common Shares | 387.7 M | 255 M | |
| Total Other Income Expense Net | 501.4 M | 526.5 M | |
| Net Income From Continuing Ops | 880 M | 532.4 M | |
| Non Operating Income Net Other | 1.6 B | 1.7 B | |
| Interest Income | 349.3 M | 366.7 M | |
| Net Interest Income | -411 M | -431.5 M | |
| Change To Netincome | -73.7 M | -77.3 M | |
| Net Income Per Share | 3.18 | 3.34 | |
| Income Quality | 1.72 | 1.63 | |
| Net Income Per E B T | 0.92 | 0.73 |
Digital Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Digital Realty. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Digital Realty position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Digital Realty's important profitability drivers and their relationship over time.
Use Digital Realty in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Digital Realty position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Digital Realty will appreciate offsetting losses from the drop in the long position's value.Digital Realty Pair Trading
Digital Realty Trust Pair Trading Analysis
The ability to find closely correlated positions to Digital Realty could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Digital Realty when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Digital Realty - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Digital Realty Trust to buy it.
The correlation of Digital Realty is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Digital Realty moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Digital Realty Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Digital Realty can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Digital Realty position
In addition to having Digital Realty in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Utilities Thematic Idea Now
Utilities
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Utilities theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Utilities Theme or any other thematic opportunities.
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Additional Tools for Digital Stock Analysis
When running Digital Realty's price analysis, check to measure Digital Realty's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Digital Realty is operating at the current time. Most of Digital Realty's value examination focuses on studying past and present price action to predict the probability of Digital Realty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Digital Realty's price. Additionally, you may evaluate how the addition of Digital Realty to your portfolios can decrease your overall portfolio volatility.