As of May 22, 2025, CoreSite Realty Corp has a Discounted Cash Flow (DCF) derived fair value of $372.60 per share. With the current market price at $291.36, this represents a potential upside of 27.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $285.18 |
| DCF Fair Value (10-year) | $372.60 |
| Potential Upside (5-year) | -2.1% |
| Potential Upside (10-year) | 27.9% |
| Discount Rate (WACC) | 6.1% - 7.8% |
Revenue is projected to grow from $293959 million in 09-2024 to $725916 million by 09-2034, representing a compound annual growth rate of approximately 9.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 09-2024 | 293959 | 12% |
| 09-2025 | 327914 | 12% |
| 09-2026 | 358747 | 9% |
| 09-2027 | 387863 | 8% |
| 09-2028 | 435075 | 12% |
| 09-2029 | 480087 | 10% |
| 09-2030 | 522225 | 9% |
| 09-2031 | 574053 | 10% |
| 09-2032 | 618193 | 8% |
| 09-2033 | 665750 | 8% |
| 09-2034 | 725916 | 9% |
Net profit margin is expected to improve from 1% in 09-2024 to 1% by 09-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 09-2024 | 1519 | 1% |
| 09-2025 | 1695 | 1% |
| 09-2026 | 1854 | 1% |
| 09-2027 | 2005 | 1% |
| 09-2028 | 2249 | 1% |
| 09-2029 | 2481 | 1% |
| 09-2030 | 2699 | 1% |
| 09-2031 | 2967 | 1% |
| 09-2032 | 3195 | 1% |
| 09-2033 | 3441 | 1% |
| 09-2034 | 3752 | 1% |
with a 5-year average of $450 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 09-2025 | 500 |
| 09-2026 | 549 |
| 09-2027 | 597 |
| 09-2028 | 670 |
| 09-2029 | 755 |
| 09-2030 | 828 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 31 |
| Days Inventory | 25 |
| Days Payables | 65 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2025 | 1456 | 270 | 311 | (194) | 1069 |
| 2026 | 3187 | 592 | 680 | (989) | 2904 |
| 2027 | 3449 | 640 | 735 | (613) | 2688 |
| 2028 | 3870 | 717 | 825 | (1,002) | 3330 |
| 2029 | 4286 | 792 | 910 | (1,105) | 3689 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 285.18 | -2.1% |
| 10-Year DCF (Growth) | 372.60 | 27.9% |
| 5-Year DCF (EBITDA) | 243.27 | -16.5% |
| 10-Year DCF (EBITDA) | 339.08 | 16.4% |
Is CoreSite Realty Corp (COR) a buy or a sell? CoreSite Realty Corp is definitely a buy. Based on our DCF analysis, CoreSite Realty Corp (COR) appears to be significantly undervalued with upside potential of 27.9%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $291.36.