Digital Realty Price To Earning vs. Cash Per Share

DLR-PK Preferred Stock  USD 24.40  0.05  0.20%   
Based on the key profitability measurements obtained from Digital Realty's financial statements, Digital Realty Trust may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in December. Profitability indicators assess Digital Realty's ability to earn profits and add value for shareholders.
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.
  
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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 Cash Per Share vs. Price To Earning 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 one of the top stocks in price to earning category among its peers. It also is one of the top stocks in cash per share category among its peers fabricating about  0.27  of Cash Per Share per Price To Earning. The ratio of Price To Earning to Cash Per Share for Digital Realty Trust is roughly  3.69 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Digital Realty's earnings, one of the primary drivers of an investment's value.

Digital Cash Per Share vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Digital Realty

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
12.80 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

Digital Realty

Cash Per Share

 = 

Total Cash

Average Shares

 = 
3.47 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.

Digital Cash Per Share Comparison

Digital Realty is currently under evaluation in cash per share 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.
Digital Realty supports the worlds leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. Digital Realtys global data center footprint gives customers access to the connected communities that matter to them with more than 284 facilities in 48 metros across 23 countries on six continents. Digital Realty operates under REITOffice classification in the United States and is traded on NYQ Exchange. It employs 1550 people.

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.
Pair CorrelationCorrelation Matching

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.

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Chemicals Makers
Chemicals Makers Theme
Companies developing chemicals for crops, soil as well as human, and animals. The Chemicals Makers theme has 41 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 Chemicals Makers Theme or any other thematic opportunities.
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Other Information on Investing in Digital Preferred Stock

To fully project Digital Realty's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Digital Realty Trust at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Digital Realty's income statement, its balance sheet, and the statement of cash flows.
Potential Digital Realty investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Digital Realty investors may work on each financial statement separately, they are all related. The changes in Digital Realty's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Digital Realty's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.