Discounted Cash Flow (DCF) Analysis Unlevered

Digital Realty Trust, Inc. (DLR)

$101.66

+0.96 (+0.95%)

All numbers are in Millions, Currency in USD

Stock DCF: 542.75 | 101.66 | undervalue

Operating Data

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 (%)
EBITDA	1,425.13	1,754.28	2,093.85	3,566.89	2,286.49	2,977.78	3,322.99	3,708.21	4,138.09	4,617.81
EBITDA (%)
EBIT	654.86	944.81	727.47	2,080.26	708.56	1,378.62	1,538.44	1,716.78	1,915.81	2,137.90
EBIT (%)
Depreciation	770.28	809.47	1,366.38	1,486.63	1,577.93	1,599.16	1,784.55	1,991.43	2,222.29	2,479.91
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	126.70	89.82	108.50	142.70	23,916.44	5,473.51	6,108.03	6,816.12	7,606.29	8,488.07
Total Cash (%)
Account Receivables	299.62	305.50	603.11	671.72	969.29	739.64	825.39	921.07	1,027.85	1,147
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	1,164.51	1,007.76	1,186.81	1,543.62	1,868.88	1,829.62	2,041.72	2,278.41	2,542.54	2,837.29
Accounts Payable (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 101.66
Beta	0.542
Diluted Shares Outstanding	297.92
Cost of Debt
Tax Rate	8.26
After-tax Cost of Debt	1.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.040
Total Debt	18,067.85
Total Equity	30,286.45
Total Capital	48,354.29
Debt Weighting	37.37
Equity Weighting	62.63
Wacc

Build Up Free Cash

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
EBITDA	1,425.13	1,754.28	2,093.85	3,566.89	2,286.49	2,977.78	3,322.99	3,708.21	4,138.09	4,617.81
EBIT	654.86	944.81	727.47	2,080.26	708.56	1,378.62	1,538.44	1,716.78	1,915.81	2,137.90
Tax Rate	3.48%	5.15%	11.07%	6.10%	8.26%	6.81%	6.81%	6.81%	6.81%	6.81%
EBIAT	632.05	896.19	646.91	1,953.46	650.05	1,284.72	1,433.66	1,599.86	1,785.32	1,992.29
Depreciation	770.28	809.47	1,366.38	1,486.63	1,577.93	1,599.16	1,784.55	1,991.43	2,222.29	2,479.91
Accounts Receivable	-	-5.88	-297.61	-68.61	-297.57	229.65	-85.74	-95.68	-106.78	-119.16
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-156.75	179.05	356.81	325.26	-39.27	212.10	236.69	264.13	294.75
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
UFCF	-	-	-	-	-	3,074.27	3,344.57	3,732.29	4,164.96	4,647.80
WACC
PV UFCF						2,946.11	3,071.53	3,284.72	3,512.70	3,756.51
SUM PV UFCF										16,571.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.35
Free cash flow (t + 1)	4,740.75
Terminal Value	201,734.11
Present Value of Terminal Value	163,048.60

Intrinsic Value

Enterprise Value	179,620.18
Net Debt	17,926.07
Equity Value	161,694.11
Shares Outstanding	297.92
Equity Value Per Share	542.75