Equinix, Inc. (EQIX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-101.3%

-$12.80

vs $994.25 price

Levered DCF

-$72.74

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.64

Grey zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	55.56×	110.41×	77.82×	85.18×	151.86×	169.24×	96.8×	76.98×
P/B	5.3×	6.65×	6.04×	5.21×	6.98×	5.89×	5.56×	3.9×
P/S	8.1×	10.29×	9.21×	8.26×	11.44×	10.44×	8.83×	5.55×
EV / EBITDA	23.57×	30.77×	26.93×	25.51×	34.36×	31.95×	24.63×	17.81×
Gross margin	51.3%	48.9%	48.4%	48.4%	47.7%	48.7%	49.5%	48.6%
Operating margin	20.0%	15.2%	17.6%	16.5%	16.7%	17.6%	21.0%	19.3%
Net margin	14.6%	9.3%	11.8%	9.7%	7.5%	6.2%	9.1%	7.2%
Current ratio	1.32×	1.63×	1.13×	1.8×	1.84×	1.29×	1.33×	1×
Debt / equity	1.61×	1.4×	1.4×	1.43×	1.38×	1.31×	1.5×	1.57×
Interest coverage	3.25×	2.91×	3.59×	3.37×	3.3×	2.59×	2.44×	1.87×
Dividend yield	2.5%	1.8%	1.8%	1.9%	1.4%	1.5%	1.7%	2.6%
Payout ratio	137.5%	201.6%	141.8%	163.5%	208.5%	256.4%	164.8%	202.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.5%	6.0%	7.8%	6.1%	4.6%	3.5%	5.7%	5.1%
Return on invested capital	4.4%	3.3%	4.0%	3.5%	3.4%	3.0%	3.8%	4.3%
Return on assets	3.4%	2.3%	3.0%	2.3%	1.8%	1.4%	2.1%	1.8%
Free cash flow yield	-0.5%	0.2%	0.6%	1.1%	-0.3%	0.0%	-0.2%	-1.0%
Earnings yield	1.8%	0.9%	1.3%	1.2%	0.7%	0.6%	1.0%	1.3%
Enterprise value	$96B	$105.9B	$90.8B	$74.5B	$89.4B	$75B	$60.5B	$38.9B
Net debt / EBITDA	5.16×	4.61×	4.56×	4.98×	5.17×	5.25×	4.65×	4.92×
Cash conversion cycle (days)	29	47	44	45	43	32	41	40