Discounted Cash Flow (DCF) Analysis Levered

Digital Realty Trust, Inc. (DLR)

$98.89

+6.67 (+7.23%)

All numbers are in Millions, Currency in USD

Stock DCF: 350.36 | 98.89 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,046.48	3,209.24	3,903.61	4,427.88	4,691.83	5,235.74	5,842.71	6,520.04	7,275.88	8,119.35
Revenue (%)
Operating Cash Flow	1,385.32	1,513.82	1,706.54	1,702.23	1,659.39	2,200.81	2,455.94	2,740.65	3,058.37	3,412.91
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	2,200.81	2,455.94	2,740.65	3,058.37	3,412.91

Weighted Average Cost Of Capital

Share price	$ 98.89
Beta	0.544
Diluted Shares Outstanding	297.92
Cost of Debt
Tax Rate	8.30
After-tax Cost of Debt	1.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.379
Total Debt	18,067.85
Total Equity	29,461.21
Total Capital	47,529.06
Debt Weighting	38.01
Equity Weighting	61.99
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,046.48	3,209.24	3,903.61	4,427.88	4,691.83	5,235.74	5,842.71	6,520.04	7,275.88	8,119.35
Operating Cash Flow	1,385.32	1,513.82	1,706.54	1,702.23	1,659.39	2,200.81	2,455.94	2,740.65	3,058.37	3,412.91
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	2,200.81	2,455.94	2,740.65	3,058.37	3,412.91
WACC
PV LFCF						2,105.43	2,247.69	2,399.56	2,561.69	2,734.77
SUM PV LFCF										12,049.13

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.53
Free cash flow (t + 1)	3,481.17
Terminal Value	137,595.73
Present Value of Terminal Value	110,255.49

Intrinsic Value

Enterprise Value	122,304.62
Net Debt	17,926.07
Equity Value	104,378.54
Shares Outstanding	297.92
Equity Value Per Share	350.36