Discounted Cash Flow (DCF) Analysis Levered

Digital Realty Trust, Inc. (DLR)

$113.58

-1.63 (-1.41%)

All numbers are in Millions, Currency in USD

Stock DCF: 418.29 | 113.58 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	2,457.93	3,046.48	3,209.24	3,903.61	4,427.88	5,140.27	5,967.27	6,927.32	8,041.84	9,335.66
Revenue (%)
Operating Cash Flow	1,023.31	1,385.32	1,513.82	1,706.54	1,702.23	2,225.09	2,583.07	2,998.66	3,481.10	4,041.16
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	2,225.09	2,583.07	2,998.66	3,481.10	4,041.16

Weighted Average Cost Of Capital

Share price	$ 113.58
Beta	0.513
Diluted Shares Outstanding	283.80
Cost of Debt
Tax Rate	6.10
After-tax Cost of Debt	1.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.043
Total Debt	14,960.40
Total Equity	32,233.95
Total Capital	47,194.35
Debt Weighting	31.70
Equity Weighting	68.30
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	2,457.93	3,046.48	3,209.24	3,903.61	4,427.88	5,140.27	5,967.27	6,927.32	8,041.84	9,335.66
Operating Cash Flow	1,023.31	1,385.32	1,513.82	1,706.54	1,702.23	2,225.09	2,583.07	2,998.66	3,481.10	4,041.16
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	2,225.09	2,583.07	2,998.66	3,481.10	4,041.16
WACC
PV LFCF						2,124.80	2,355.47	2,611.18	2,894.66	3,208.91
SUM PV LFCF										13,195.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.72
Free cash flow (t + 1)	4,121.98
Terminal Value	151,543.53
Present Value of Terminal Value	120,334.24

Intrinsic Value

Enterprise Value	133,529.27
Net Debt	14,817.70
Equity Value	118,711.57
Shares Outstanding	283.80
Equity Value Per Share	418.29