Is Digital Realty Trust, Inc. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Digital Realty Trust, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 87, an EV to EBITDA of 22.06, and a Price to Book Value of 2.80, which are significantly higher than its peers, such as Prologis, Inc. with a P/E of 31.30 and an EV to EBITDA of 17.36, and Simon Property Group, Inc. with a P/E of 33.41 and an EV to EBITDA of 16.11.
In terms of recent performance, Digital Realty Trust has underperformed compared to the S&P 500, with a year-to-date return of -3.37% versus the S&P 500's 12.22%. This trend is further emphasized by its 5-year return of 18.28%, which is starkly lower than the S&P 500's 96.61%, reinforcing the notion that the stock may be overvalued in the current market environment.