* Note: Prices are in Million (M) USD.
Description:
Equinix, Inc. is an American multinational company headquartered in Redwood City, California, that specializes in Internet connection and data centers.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,660 M
Debt : $21,851 M
EBITDA : $3,619 M
Net Debt (Debt - Cash): $18,191 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - diversified
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 42.86
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-11 M
Average Revenue: $3,500 M
Revenue Converted To Free Cash Flow (%): -0.3%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $8,748 M
Revenue 4 Years Ago (2020-12-31): $5,999 M
Last 5 Years Average Revenue Growth: 9%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $97 M
Share Count 5 Years Ago (2020-12-31): $88 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $19.71
Trailing 12-Month Earnings Per Share (EPS): $16.98
Average Earnings Per Share (EPS): $18.35
Dividend Per Share (DPS): $18
Payout Ratio: 98%
Dividend Yield: 2%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 3.0%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $786
52-Week Low: $698
Threshold Price (15% Above 52-Week Low): $802
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $76,016 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 16 points to above Equinix Inc (EQIX) stock.
Last 1 Years Avg PE 17.91, Fair Value PE 12, Industry Based PE 20, Growth Based PE 9, RCFC Based PE 12, ROE Based PE 12.43, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 14.35. Value-Trades has assined P/E value 14.35. Since an average (Current Year EPS + Next Year EPS) earning per share is $18.345.
The fair value of Equinix Inc (EQIX) stock should be (14.35 x $18.345) = $263.18.
