Digital Realty Trust (DLR) is back in focus after announcing a planned data center campus in Milan and a new engagement supporting Samsung Electronics at its ICN10 facility in Seoul, both centered on cloud and AI workloads.

At a share price of $175.42, Digital Realty Trust has a 90 day share price return of 13.17%, while its 1 year and 3 year total shareholder returns of 27.05% and 96.85% point to momentum that has been building rather than fading.

If these AI and cloud related moves catch your attention, it can be worth seeing what else is happening across digital infrastructure, including 35 AI infrastructure stocks

With revenue of US$6,080.71m, net income of US$1,267.87m, a recent share price of US$175.42 and an indicated intrinsic discount of 26.02%, the key question is whether there is still a buying opportunity here or whether the market is already pricing in future growth.

Most Popular Narrative: 58.8% Overvalued

According to the most followed narrative from Unike, the fair value for Digital Realty Trust is $110.45, well below the recent $175.42 share price. This sets up a clear valuation gap for readers to weigh.

Digital Realty should be a leading global provider of AI-ready and hyperscale data centers, with stronger cloud partnerships, a global footprint, and higher-margin interconnection services.

Want to see what kind of business outlook supports that lower fair value? The narrative leans on steady revenue growth, firm margins, and a future profit multiple that might surprise you.

Result: Fair Value of $110.45 (OVERVALUED)

However, the narrative could crack if rising interest costs squeeze this REIT’s high leverage or if hyperscalers move more workloads into their own facilities.

Another Take on Value

That $110.45 fair value from the user narrative leans on long term assumptions, but our DCF model paints a different picture. With DLR at $175.42 and an estimated future cash flow value of $237.11, the shares screen as undervalued rather than expensive. This raises an obvious question: which story do you trust more?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Digital Realty Trust for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 61 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed messages on value and expectations can make it hard to feel settled, so move quickly, review the data for yourself and weigh both sides using 3 key rewards and 3 important warning signs

Looking for more investment ideas?

If this story has you thinking about what else might be worth your attention, do not stop here. Broaden your watchlist with targeted ideas that match your style.

• Zero in on potential mispriced opportunities by checking out the 61 high quality undervalued stocks that pair quality fundamentals with appealing valuations.
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• Prioritize resilience and capital preservation by scanning the 67 resilient stocks with low risk scores designed to highlight companies with lower risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.