Equinix has raised multi-year capital through a series of new senior notes, including US$850 million due 2029 and additional tranches maturing in 2031, 2033 and 2036. Following the debt issuance, one widely followed narrative estimates the data center operator's fair value at $1,222 per share, implying the stock is about 15.5% undervalued relative to its last close of $1,032. The valuation is based on a 7.7% discount rate and detailed long-term forecasts, supported by rapid expansion of Equinix Fabric and interconnection services, which saw 8% year-over-year growth, over 4,000 customers, and record interconnection revenue. However, the stock currently trades at a price-to-earnings ratio of 66.5 times, well above the North American Specialized REITs industry average of 25.4 times and a fair ratio of 38 times, raising questions about whether the share price could eventually gravitate lower if sentiment cools.
