Equinix Inc ($EQIX) Cautious Buy or Hold to $222 Confident Investor Rating: Fair
| Company name | Equinix Inc |
| Stock ticker | EQIX |
| Live stock price | [stckqut]EQIX[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $290.75 |
| Target stock price (averages with growth) | $205.48 |
| Target stock price (averages with no growth) | $18.78 |
| Target stock price (manual assumptions) | $271.16 |
The following company description is from Google Finance: http://www.google.com/finance?q=eqix
Equinix, Inc. (Equinix) connects businesses with partners and customers worldwide through a global platform of data centers. The Company connects approximately 4000 customers, across the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific. Platform Equinix combines international business exchange (IBX) data centers, a global footprint and ecosystems. The Company offers each customer a choice of business partners and solutions based on their colocation, interconnection and managed IT service needs. Equinix offers customers direct interconnection to an aggregation of bandwidth providers, including the Internet Service Providers (ISPs), broadband access networks and international carriers. Its customers include carriers and other bandwidth providers, cloud and information technology services providers, content providers, financial companies and global enterprises. On July 2, 2012, (the ancotel Acquisition Date), the Company acquired a privately-held company in Germany.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Equinix Inc as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns mainly due to price volatility. However, Equinix is a good play for cloud strategy as well as international exposure in the IT space. I will leave the company on my Watch List, even though it is currently ranked as a Fair company.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Equinix Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $187.81
Growth: 0.19
Current EPS (TTM): $1.83
P/E: 100
Future EPS Calc: $4.36
Future Stock Price Calc: $436.7
Target stock price: $271.15
I hope that this makes you a better investor. [/s2If]
