Is Equinix, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Equinix, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears overvalued, especially when considering its P/E ratio of 71, which is substantially higher than its peers like Prologis, Inc. with a P/E of 31.30, and Digital Realty Trust, Inc. at 36.75. Additionally, Equinix's EV to EBITDA stands at 22.00, further suggesting a premium valuation compared to the industry.
In terms of peer comparison, Welltower, Inc. is also classified as expensive with a P/E of 88.35, while Simon Property Group, Inc. is seen as very attractive with a P/E of 33.41. The company's recent performance shows a YTD return of -16.71%, significantly lagging behind the S&P 500's 12.22% return, which reinforces the notion that Equinix may not be a favorable investment at its current valuation.