Is Equinix, Inc. overvalued or undervalued?

As of 30 October 2024, the valuation grade for Equinix, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 71, an EV to EBITDA of 22.00, and a PEG ratio of 2.37, which are all substantially higher than industry averages.
In comparison to peers, Equinix's P/E ratio is notably higher than American Tower Corp. at 34.12 and Prologis, Inc. at 26.72, both of which are considered fairly valued. Additionally, its EV to EBITDA ratio of 22.00 is elevated compared to Prologis' 16.48. Despite a recent positive return of 16.34% over the past year, which outperformed the S&P 500's 10.26%, the overall valuation metrics suggest that Equinix is not a compelling investment at current levels.