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    Is Digital Realty Trust (DLR) A Bargain Following Its €1b And CHF510m Bond Raise?

    Simply Wall St·10/08/2026 05:31:49
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    Digital Realty Trust (DLR) has been back in the bond market, pricing €1b of 5.125% senior unsecured notes due 2036 and closing CHF510 million of additional Swiss bonds through its subsidiaries.

    These new euro and Swiss bond issues come after a busy period for Digital Realty Trust, with its share price at US$180.47 and a year-to-date share price return of 16.41%, alongside a 3-year total shareholder return of 58.78%. This indicates that momentum has broadly been building, even as the 1-month share price return declined 4.20% and the 1-year total shareholder return reached 6.57%.

    Scan how Digital Realty Trust compares with other AI infrastructure plays by reviewing our hand picked 92 AI infrastructure stocks before you decide where fresh capital makes the most sense.

    Digital Realty Trust has already rewarded shareholders over the past three years, yet the recent pullback and fresh bond issuance reset the debate. Is most of the upside already behind the stock, or is there still meaningful room ahead in terms of valuation?

    Most Popular Narrative: 19.3% Undervalued

    Digital Realty Trust is priced at $180.47 against a widely followed fair value estimate of $223.59. This frames the bond raise against a market that still treats the stock as materially discounted when using a 7.89% discount rate.

    Digital Realty's record signed but not yet commenced lease backlog of about US$1.9b, plus a further US$410m of hyperscale leases signed in July, points to a large pipeline of contracted revenue that has not yet flowed through earnings and could support future core FFO per share.

    See why 68 investors see Digital Realty Trust as 19% undervalued.

    Result: Fair Value of $223.59 (UNDERVALUED)

    Still, Digital Realty Trust faces real pressure if its 1.4 GW build program outpaces demand or if heavier reliance on external funding coincides with tighter capital markets.

    Find out about the key risks to this Digital Realty Trust narrative.

    Another View: What Multiples Say About Digital Realty Trust

    Digital Realty Trust might screen as undervalued on fair value estimates, but the P/E ratio tells a tougher story. The shares trade at 88.3x earnings, compared with a North American Specialized REITs average of 23.9x and a fair ratio of 40.6x. That gap points to valuation risk if sentiment cools.

    To see how those earnings multiples stack up in more detail, and what that means for valuation risk, See what the numbers say about this price — find out in our valuation breakdown.

    NYSE:DLR P/E Ratio as at Oct 2026
    NYSE:DLR P/E Ratio as at Oct 2026

    Next Steps

    Mixed signals around Digital Realty Trust can make it hard to know which way to lean, so move quickly, review the numbers yourself, and weigh both sides with the help of 4 key rewards and 2 important warning signs

    Looking for more investment ideas beyond Digital Realty Trust?

    If Digital Realty Trust has your attention, do not stop there. Broadening your opportunity set can help you spot strengths and risks you might otherwise miss.

    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.