5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Digital Realty Trust's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 3.04%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Digital Realty Trust's 5-Year ROIIC % or its related term are showing as below:
DLR's 5-Year ROIIC % is ranked worse than 60.22% of 636
companies
in the REITs industry
Industry Median: 4.07
vs DLR: 3.04
Digital Realty Trust (NYSE:DLR) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Digital Realty Trust 5-Year ROIIC % Related Terms
Digital Realty Trust 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Digital Realty Trust's 5-Year ROIIC % 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.
For the REIT - Specialty subindustry, Digital Realty Trust's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs REITs Industry
For the REITs industry and Real Estate sector, Digital Realty Trust's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Digital Realty Trust's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Digital Realty Trust (DLR) has a 5-Year ROIIC % of 3.04 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Digital Realty Trust and its competitors. According to the industry distribution chart, Digital Realty Trust ranks #383 out of 636 companies in the REITs industry, placing it in the top 60.2%.
Is Digital Realty Trust's 5-Year ROIIC % too high?
Digital Realty Trust's current 5-Year ROIIC % is 3.04. The REITs industry median 5-Year ROIIC % is 4.07. Digital Realty Trust's value of 3.04 is 25.3% below this industry median. Based on the distribution chart, Digital Realty Trust ranks #383 out of 636 companies in the REITs industry, which is below the industry midpoint. 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 5-Year ROIIC % compare to AMT and CCI?
According to the REITs industry distribution chart, Digital Realty Trust ranks #383 out of 636 companies for 5-Year ROIIC %. This places Digital Realty Trust in the lower half of its industry. The industry median 5-Year ROIIC % is 4.07. Digital Realty Trust's value of 3.04 is 25.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a REITs company?
The median 5-Year ROIIC % among REITs companies is 4.07, based on 636 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digital Realty Trust's current 5-Year ROIIC % of 3.04 is 25.3% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Digital Realty Trust and its competitors. For the REITs industry, the median 5-Year ROIIC % is 4.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Realty Trust's current 5-Year ROIIC % is 3.04. 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 5-Year ROIIC % is 3.04 and 25.3% below the REITs industry median of 4.07. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Digital Realty Trust (DLR), the current 5-Year ROIIC % is 3.04 as of Dec. 2025. 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:
5-Year ROIIC %: 3.04
GF Value™: $166.67 vs. price of $193.02 (15.8% above fair value)
Industry Position: 25.3% below the REITs median (#383 of 636)
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
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