Digital Realty Gross Profit vs. EBITDA

DLR Stock  USD 194.02  1.20  0.62%   
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 this time. It has a very high probability of underperforming in December. Profitability indicators assess Digital Realty's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2002-12-31
Previous Quarter
324.1 M
Current Value
774.9 M
Quarterly Volatility
227.6 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Digital Realty's Days Sales Outstanding is relatively stable compared to the past year. As of 11/26/2024, Sales General And Administrative To Revenue is likely to grow to 0.09, while EV To Sales is likely to drop 7.62. At this time, Digital Realty's Income Before Tax is relatively stable compared to the past year. As of 11/26/2024, Net Income is likely to grow to about 997.8 M, while Operating Income is likely to drop slightly above 349.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.740.5256
Significantly Up
Slightly volatile
Operating Profit Margin0.0910.0958
Notably Down
Slightly volatile
Pretax Profit Margin0.120.1873
Way Down
Very volatile
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.
  

Digital Realty's Revenue Breakdown by Earning Segment

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Is Specialized REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Digital Realty. If investors know Digital will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Digital Realty listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.96)
Dividend Share
4.88
Earnings Share
1.23
Revenue Per Share
16.985
Quarterly Revenue Growth
0.016
The market value of Digital Realty Trust is measured differently than its book value, which is the value of Digital that is recorded on the company's balance sheet. Investors also form their own opinion of Digital Realty's value that differs from its market value or its book value, called intrinsic value, which is Digital Realty's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Digital Realty's market value can be influenced by many factors that don't directly affect Digital Realty's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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 EBITDA vs. Gross Profit 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 rated # 4 in gross profit category among its peers. It is rated # 3 in ebitda category among its peers totaling about  0.91  of EBITDA per Gross Profit. The ratio of Gross Profit to EBITDA for Digital Realty Trust is roughly  1.10 . At this time, Digital Realty's Gross Profit is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Digital Realty by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Digital EBITDA vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Digital Realty

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.66 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Digital Realty

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
2.42 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Digital EBITDA Comparison

Digital Realty is currently under evaluation in ebitda 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-6 B-5.7 B
Operating Income524.5 M349.9 M
Income Before TaxB1.1 B
Net Income950.3 M997.8 M
Income Tax Expense75.6 M79.4 M
Net Income Applicable To Common Shares387.7 M255 M
Total Other Income Expense Net501.4 M526.5 M
Net Income From Continuing Ops880 M532.4 M
Non Operating Income Net Other1.6 B1.7 B
Interest Income349.3 M366.7 M
Net Interest Income-411 M-431.5 M
Change To Netincome-73.7 M-77.3 M
Net Income Per Share 3.18  3.34 
Income Quality 1.72  1.63 
Net Income Per E B T 0.92  0.73 

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

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Additional Tools for Digital Stock Analysis

When running Digital Realty's price analysis, check to measure Digital Realty's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Digital Realty is operating at the current time. Most of Digital Realty's value examination focuses on studying past and present price action to predict the probability of Digital Realty's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Digital Realty's price. Additionally, you may evaluate how the addition of Digital Realty to your portfolios can decrease your overall portfolio volatility.