The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 5%. Our forward projection puts the odds of a 10% gain over the next month near 19%. The street (29 analysts) rates it buy, with a mean price target of $219. It reported earnings in this window, a natural checkpoint for the thesis.
Digital Realty DLR
Clears the common standardAn entry written while the outcome is still unknown. It will be scored by what the market does next, and it will never be edited to look cleverer than it was.
In plain words · Digital Realty Trust, Inc.
read at $194.93
Digital Realty holds its Markup at $194.93.
- PHPhase · the trend structure carries the Markup label
- INInsiders · no filings inside 60 days, left as found
- POPositioning · no disclosures inside 60 days, left as found
- OPOptions · no verdict drawn today, left as found
- SCScreen · does not pass the values gate
- edge confirmed
- edge broken
- edge forming
Each arm is one independent read. Conviction is not a single call, it is how many edges converge.
The investor read · the season, not the day
| Phase | Markup |
| Quantitative state | The statistical read favours the sellers, held for 9 days |
| Price | $194.93 |
| Valuation | 249.91 trailing · 66.46 forward price to earnings |
| Values screen | FAIL · score 10.0 |
| Beta | 1.04 |
The opportunity · what the numbers say it is worth
Our framework reads AVOID — it trades above our $134.46 fair value estimate, narrow competitive moat, 29.90% revenue growth.
Price history & projections · where it has been, where the models see it going
The valuation journey · where the price sits against fair value and the Street
Green marks levels above today's price, red below; the shaded band is the gap between the price and our fair value.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish — a quality-at-a-fair-price name rather than a deep-value one.
| Revenue growth | 29.90% |
| Profit margin | 11.83% |
| Debt to equity | 67.94 |
| Analyst consensus | Buy · 31 covering |
Fair value and rating are our own model estimates; target range reflects third-party analyst estimates. Analysis, not advice.
The values screen, explained · five checks, plain English
It depends which standard you follow. There are two widely recognised ways to check whether a company is suitable for a Muslim investor, and on this company they disagree. Here is how it did on each:
Used by most halal investing apps ✓ PASSES
The one Titan applies ✗ DOES NOT PASS
Why the two disagree. They fall out over one thing only: the company’s debt. Our stricter standard measures that debt against what the company owns, and it works out too high to pass. The common standard measures the same debt against what the company is worth on the stock market, where it works out low enough to pass. Every other check, the two agree on. So in practice, most halal apps would treat this as fine to hold, while our stricter view would not — and which line you follow is between you and your scholar.
What these two standards are, and how they differ →
- Business activity Its core business isn't built on prohibited lines — no gambling, alcohol, tobacco, weapons, or interest-based lending. Pass
- Debt load Interest-bearing debt is 39.8% of its assets, above the one-third ceiling the screen allows. Against market value it is 26.4%, under the 30% line the market-value standard uses — so that standard clears it. Divergent
- Interest-bearing cash Cash held in interest-bearing accounts and securities is 6.9% of assets, under the one-third limit. Pass
- Receivables Money owed to the company is 9.1% of assets, under the 49% limit. Pass
- Revenue purity Only 0.0% of revenue comes from non-compliant sources — under the 5% line. Pass
Every security is read against two recognised standards: our stricter asset-based screen (ratios measured against total assets) and the more widely used market-value standard (measured against market capitalisation). Where they agree we say so plainly; where they part ways — almost always on the debt check — we show both readings and mark it, because that disagreement is the finding, not a fault. We report the score; you and your scholar make the call.
The business, in plain words · what the numbers mean
Cloud Warehouses Priced Beyond Their Earnings
Data centres are the warehouses keeping the cloud economy running, yet Digital Realty trades like the future has already arrived and paid in full. At 173 dollars against a fair value near 132, the shares sit 24 percent above what the numbers support, with a forward multiple of 64 times earnings that leaves little room for the modest 17 percent revenue growth on offer.
Return on equity sits at just 6 percent despite 22 percent profit margins, and the narrow moat does nothing to offset the debt burden that already fails the ethical screen. Thirty one analysts may still cluster around a 220 dollar target, but those figures ignore how quickly higher interest costs can erode REIT cash flows when leverage is this elevated.
The combination of stretched valuation and balance sheet strain creates a clear avoid, even in a sector with structural tailwinds. Analysis, not advice.
| Forward P/E | 66.5x expensive even after accounting for its growth |
| Trailing P/E | 249.9x expensive — the price assumes strong growth ahead |
| Revenue growth | 29.9% strong top-line growth |
| Profit margin | 11.8% thin but positive margins |
| Return on equity | 2.9% a modest return on shareholder capital |
| Debt to equity | 0.68 moderate, manageable leverage |
| Current ratio | 0.89 below 1 — short-term bills exceed liquid assets |
| Beta | 1.04 moves a little more than the market |
| Market cap | $73.4B |
| Employees | 4,282 |
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Latest news · what the market is reading on DLR
- › Digital Realty to Post Q2 Earnings: Is It a Portfolio Must-Have? Zacks · 29d ago
- › This Data Center IPO Is the Next Big Test for the AI Trade Barrons.com · 16 Jul 2026
- › PLD's Q2 Core FFO Beat Estimates, Revenues Rise on Higher Rental Income Zacks · 16 Jul 2026
- › Data Center Backlash Will Help These REITs, Wall Street Says Barrons.com · 15 Jul 2026
- › Digital Realty Trust vs. Equinix: Which Real Estate Stock Is a Better Buy in 2026? Motley Fool · 15 Jul 2026
Headlines from third-party outlets, linked for reference — not our reporting, not advice.
Related securities · others in DLR's space worth a look
Screened names in the same industry · explore each on its own page.
Where & how to trade · wherever in the world you are
DLR trades on a US exchange. As a US-listed security it is accessible through almost any international broker offering US markets. New to this, or investing from outside the US? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The trader read · the latest dated commentary
The dated journal · newest first, never edited
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 5%. Our forward projection puts the odds of a 10% gain over the next month near 19%. The street (29 analysts) rates it buy, with a mean price target of $219. It reported earnings in this window, a natural checkpoint for the thesis.
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 5%. Our forward projection puts the odds of a 10% gain over the next month near 19%. The street (29 analysts) rates it buy, with a mean price target of $219. It reported earnings in this window, a natural checkpoint for the thesis.
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 5%. Our forward projection puts the odds of a 10% gain over the next month near 19%. The street (29 analysts) rates it buy, with a mean price target of $219. It reported earnings in this window, a natural checkpoint for the thesis.
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 6.9% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 5%. Our forward projection puts the odds of a 10% gain over the next month near 19%. The street (29 analysts) rates it buy, with a mean price target of $219. It reported earnings in this window, a natural checkpoint for the thesis.
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 5%. Our forward projection puts the odds of a 10% gain over the next month near 19%. The street (29 analysts) rates it buy, with a mean price target of $219. It reported earnings in this window, a natural checkpoint for the thesis.
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 5%. Our forward projection puts the odds of a 10% gain over the next month near 19%. The street (29 analysts) rates it buy, with a mean price target of $219. It reported earnings in this window, a natural checkpoint for the thesis.
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 5%. Our forward projection puts the odds of a 10% gain over the next month near 19%. The street (29 analysts) rates it buy, with a mean price target of $219. It reported earnings in this window, a natural checkpoint for the thesis.
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns.
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
The insider ledger · Form 4 filings, as filed
| Date | Insider | Title | Type | Shares | Value |
|---|---|---|---|---|---|
| 2026-03-13 | KORNEGAY CHRISTINE BESEDA | Officer | 626 | $112,436 | |
| 2025-12-31 | KORNEGAY CHRISTINE BESEDA | Officer | 1,131 | $174,977 | |
| 2025-12-01 | PREUSSE MARY HOGAN | Director | 4,166 | $655,812 | |
| 2025-11-26 | PREUSSE MARY HOGAN | Director | 4,166 | · | |
| 2025-09-15 | POWER ANDREW P | Chief Executive Officer | 58,000 | $10,158,996 | |
| 2025-09-12 | POWER ANDREW P | Chief Executive Officer | 4,731 | · | |
| 2025-06-06 | MANDEVILLE JEAN F H P | Director | 1,300 | · | |
| 2025-06-05 | PATTERSON MARK R | Director | 175 | $30,888 | |
| 2025-03-14 | KORNEGAY CHRISTINE BESEDA | Officer | 683 | $101,473 | |
| 2024-12-31 | KORNEGAY CHRISTINE BESEDA | Officer | 986 | $174,847 |
Public filings, recorded as found. The full tape lives at Insider Intelligence.
What holding actually paid · price plus dividends
| Period | Price then | Price return | Divs per share | $1,000 became | Total return |
|---|---|---|---|---|---|
| 1 month | $196.24 | -7.4% | · | $926 | -7.4% |
| 2 months | $188.87 | -3.8% | · | $962 | -3.8% |
| 3 months | $179.18 | +1.4% | $1.22 | $1,021 | +2.1% |
| 6 months | $156.49 | +16.1% | $2.44 | $1,176 | +17.6% |
| 1 year | $172.65 | +5.2% | $4.88 | $1,080 | +8.0% |
| 2 years | $140.48 | +29.3% | $9.76 | $1,362 | +36.2% |
| 3 years | $94.50 | +92.2% | $14.64 | $2,077 | +107.7% |
| 5 years | $136.68 | +32.9% | $24.22 | $1,506 | +50.6% |
Historical returns from market close data. Past performance does not guarantee future results.