Equinix Valuation

EQIX Stock  USD 815.31  15.24  1.90%   
At this time, the firm appears to be fairly valued. Equinix shows a prevailing Real Value of $836.44 per share. The current price of the firm is $815.31. Our model computes the value of Equinix from reviewing the firm fundamentals such as Shares Outstanding of 94.62 M, current valuation of 91.12 B, and Profit Margin of 0.12 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
6.0662
Enterprise Value
91.1 B
Enterprise Value Ebitda
27.0274
Price Sales
9.7626
Forward PE
66.2252
Fairly Valued
Today
815.31
Please note that Equinix's price fluctuation is very steady at this time. Calculation of the real value of Equinix is based on 3 months time horizon. Increasing Equinix's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Equinix is useful when determining the fair value of the Equinix stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Equinix. Since Equinix is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Equinix Stock. However, Equinix's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  815.31 Real  836.44 Target  840.43 Hype  816.27 Naive  779.23
The real value of Equinix Stock, also known as its intrinsic value, is the underlying worth of Equinix Company, which is reflected in its stock price. It is based on Equinix's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Equinix's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Equinix's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
733.78
Downside
836.44
Real Value
837.93
Upside
Estimating the potential upside or downside of Equinix helps investors to forecast how Equinix stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Equinix more accurately as focusing exclusively on Equinix's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.102.652.97
Details
Hype
Prediction
LowEstimatedHigh
814.78816.27817.76
Details
Potential
Annual Dividend
LowForecastedHigh
9.199.359.51
Details
22 Analysts
Consensus
LowTarget PriceHigh
764.79840.43932.88
Details

Equinix Investments

(2.86 Billion)

Equinix Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Equinix's current stock value. Our valuation model uses many indicators to compare Equinix value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Equinix competition to find correlations between indicators driving Equinix's intrinsic value. More Info.
Equinix is one of the top stocks in net asset category among related companies. It is one of the top stocks in last dividend paid category among related companies . The ratio of Net Asset to Last Dividend Paid for Equinix is about  2,253,328,088 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Equinix by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Equinix's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Equinix's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Equinix's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Equinix and how it compares across the competition.

About Equinix Valuation

The stock valuation mechanism determines the current worth of Equinix on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Equinix. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Equinix based exclusively on its fundamental and basic technical indicators. By analyzing Equinix's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Equinix's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Equinix. We calculate exposure to Equinix's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Equinix's related companies.
Last ReportedProjected for 2024
Gross Profit3.5 B3.6 B
Pretax Profit Margin 0.14  0.14 
Operating Profit Margin 0.18  0.19 
Net Profit Margin 0.12  0.12 
Gross Profit Margin 0.42  0.40 

8 Steps to conduct Equinix's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Equinix's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Equinix's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Equinix's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Equinix's revenue streams: Identify Equinix's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Equinix's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Equinix's growth potential: Evaluate Equinix's management, business model, and growth potential.
  • Determine Equinix's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Equinix's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Equinix's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Equinix's value is low or high relative to the company's performance and growth projections. Determining the market value of Equinix can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Equinix represents a small ownership stake in the entity. As a stockholder of Equinix, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Equinix Dividends Analysis For Valuation

Dividend Yield is likely to rise to 0.04 in 2024, despite the fact that Dividends Paid is likely to grow to (1.3 B). . Price Earnings Ratio is likely to rise to 81.68 in 2024, despite the fact that Retained Earnings are likely to grow to (4.5 B).
Last ReportedProjected for 2024
Dividends Paid-1.4 B-1.3 B
Dividend Yield 0.02  0.04 
Dividend Payout Ratio 1.42  1.35 
Dividend Paid And Capex Coverage Ratio(2.38)(2.26)
There are various types of dividends Equinix can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Equinix shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Equinix directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Equinix pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Equinix by the value of the dividends paid out.

Equinix Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Equinix does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding94 M
Quarterly Earnings Growth Y O Y0.731
Forward Price Earnings66.2252

Equinix Current Valuation Indicators

Valuation refers to the process of determining the present value of Equinix and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Equinix we look at many different elements of the entity such as Equinix's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Equinix's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Equinix's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Equinix, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Equinix's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Equinix's worth.
When determining whether Equinix offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Equinix's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Equinix Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Equinix Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Equinix. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
For more information on how to buy Equinix Stock please use our How to Invest in Equinix guide.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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Is Equinix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Equinix. If investors know Equinix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Equinix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.731
Dividend Share
14.49
Earnings Share
10.33
Revenue Per Share
82.834
Quarterly Revenue Growth
0.154
The market value of Equinix is measured differently than its book value, which is the value of Equinix that is recorded on the company's balance sheet. Investors also form their own opinion of Equinix's value that differs from its market value or its book value, called intrinsic value, which is Equinix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Equinix's market value can be influenced by many factors that don't directly affect Equinix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Equinix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Equinix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equinix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.