DASHBOARD: Digital infrastructure valuation comps for September 2024
- Publisher : Venture Insights
- Publish Date : October 4, 2024
This Digital Infrastructure Valuation report provides a comprehensive analysis of key financial metrics for digital infrastructure stocks listed in Australia, New Zealand, and the broader regional market. It includes detailed visualisations of monthly and annual share price movements, key earnings multiples, and forward earnings multiples compared to forward growth estimates. Additionally, it tracks share price trends over the past twelve months, offering valuable insights for market participants.
Key developments
Overall, most listed digital infrastructure stocks in the region are up over the last year, but with wide spreads in performance among the group. Growth in cloud and AI is improving sentiment towards DC stocks, but economic growth is expected to be sluggish relative to previous years, creating uncertain performance for other Digital Infrastructure equities.
Digital Bridge
Digital Bridge’s stock increased by over 15% in the last month as the company announced that Vertical Bridge (in which it holds a majority stake) has entered into an agreement with US telecom giant Verizon to obtain the exclusive rights to lease, operate and manage 6,339 wireless communications towers across the US. The deal is worth US$3.3 billion and involves Verizon entering into a 10-year agreement to lease back capacity on the towers from Vertical Bridge, serving as the anchor tenant, with options that could extend the lease term up to 50 years.
Digital Realty
Digital Realty’s stock climbed just over 7% in the last month as the company announced that it is issuing notes worth €850 million in aggregate to fund development and redevleopment initiatives across renewable energy, energy efficiency, pollution prevention and control initiatives and environmental sustainability at its data centres. The notes will mature in September 2033 and are payable at a rate of 3.875% per annum.
Uniti Group (US)
US -based Uniti Group’s stock rose close to 34% over the last month, as the company announced a new 20-year contract award from a ‘strategic hyperscale customer’ in Alabama. As part of this award, Uniti will construct a new long-haul route that will span over 200 route miles when complete, connecting new data centers optimised for Generative AI. The company also announced during the month that Windstream, which Uniti is planning to merge with, is issuing notes worth US$800 million in aggregate.
About Venture Insights
Venture Insights is an independent company providing research services to companies across the media, telco and tech sectors in Australia, New Zealand, and Europe.