Digital Realty TrustDLR -1.02%86 Return-on-Tangible-Equity is 6.20% as of Mar. 2026, which is 47% below its 10-year median of 11.64. GuruFocus rates DLR with a GF Score™ of 86/100 and a GF Value™ of $166.67 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 932 REITs companies, Digital Realty Trust ranks better than 80.9% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Digital Realty Trust's annualized net income for the quarter that ended in Mar. 2026 was $717 Mil. Digital Realty Trust's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $11,565 Mil. Therefore, Digital Realty Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.20%.
The historical rank and industry rank for Digital Realty Trust's Return-on-Tangible-Equity or its related term are showing as below:
DLR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.99 Med: 11.64 Max: 25.14
Current: 12.36
During the past 13 years, Digital Realty Trust's highest Return-on-Tangible-Equity was 25.14%. The lowest was 5.99%. And the median was 11.64%.
DLR's Return-on-Tangible-Equity is ranked better than 80.9% of 932
companies
in the REITs industry
Industry Median: 6.34
vs DLR: 12.36
Digital Realty Trust (NYSE:DLR) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Digital Realty Trust Return-on-Tangible-Equity Related Terms
Digital Realty Trust Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Digital Realty Trust's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Digital Realty Trust Return-on-Tangible-Equity Chart
DLR vs AMT, CCI, IRM: Return-on-Tangible-Equity Comparison
For the REIT - Specialty subindustry, Digital Realty Trust's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digital Realty Trust Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Digital Realty Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Digital Realty Trust's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.20% mean?
Digital Realty Trust (DLR) has a Return-on-Tangible-Equity of 6.20% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Digital Realty Trust and its competitors. This is 47% below median its historical median of 11.64. Over the past decade, Digital Realty Trust's Return-on-Tangible-Equity has ranged from 5.99 to 25.14. According to the industry distribution chart, Digital Realty Trust ranks #178 out of 932 companies in the REITs industry, placing it in the top 19.1%.
Is Digital Realty Trust's Return-on-Tangible-Equity too high?
Digital Realty Trust's current Return-on-Tangible-Equity of 6.20% is 47% below median its 10-year median of 11.64. Over the past 10 years, this metric has ranged from a low of 5.99 to a high of 25.14. The REITs industry median Return-on-Tangible-Equity is 6.34. Digital Realty Trust's value of 6.20% is 2.2% below this industry median. Based on the distribution chart, Digital Realty Trust ranks #178 out of 932 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Digital Realty Trust has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Realty Trust's Return-on-Tangible-Equity compare to AMT and CCI?
According to the REITs industry distribution chart, Digital Realty Trust ranks #178 out of 932 companies for Return-on-Tangible-Equity. This places Digital Realty Trust in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.34. Digital Realty Trust's value of 6.20% is 2.2% below this benchmark. Historically, Digital Realty Trust's own Return-on-Tangible-Equity has ranged from 5.99 to 25.14 over the past decade. While the company's 10-year median is 11.64 vs. the industry median of 6.34, Digital Realty Trust has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.34, based on 932 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digital Realty Trust's current Return-on-Tangible-Equity of 6.20% is 2.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Digital Realty Trust and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Realty Trust's current Return-on-Tangible-Equity is 6.20%, which is 47% below median its own 10-year median of 11.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Realty Trust stock overvalued right now?
Based on GuruFocus' analysis, Digital Realty Trust (DLR) is currently considered Modestly Overvalued. The stock's GF Value™ is $166.67, compared to a current price of $193.02 — trading 15.8% above its estimated fair value. The current Return-on-Tangible-Equity is 6.20%, which is 47% below median its 10-year median of 11.64 and 2.2% below the REITs industry median of 6.34. Digital Realty Trust's overall GF Score™ is 86/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Digital Realty Trust (DLR), the current Return-on-Tangible-Equity is 6.20% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Digital Realty Trust (DLR) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Realty Trust stock appears to be overvalued.
The current stock price of $193.02 is trading 15.8% above its estimated GF Value™ of $166.67.
GuruFocus considers Digital Realty Trust to be Modestly Overvalued.
Key valuation signals for DLR:
Return-on-Tangible-Equity: 6.20% (47% below median its 10-year median of 11.64)
GF Value™: $166.67 vs. price of $193.02 (15.8% above fair value)
Industry Position: 2.2% below the REITs median (#178 of 932)
No single metric tells the full story. See the DLR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Realty is one of the leading providers of cloud- and carrier-neutral data centers, offering colocation and interconnection services to hyperscalers and large businesses. Digital Realty operates 300 properties in 57 metropolitan areas across 31 countries, serving 5,000 customers. Renting physical space accounts for about 90% of Digital Realty's revenue. The firm enables hyperscalers and other clients to store servers, data, and networking equipment. The other 10% of revenue is generated primarily through interconnection services (8%) and other fee income (2%).
86GF Score
Get the complete analysis for DLR
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DLR has been successfully added to your 
