Prologis

Methodology

This EPS-based method has fundamental limitations for Prologis as a REIT, since depreciation distorts reported earnings despite stable cash flows from modern logistics properties. Investors should use FFO or AFFO-based models instead, which better capture the economic reality of the leading industrial REIT. E-commerce growth and supply chain evolution make cash flow-based valuation straightforward.

Methodology

Traditional PEG analysis is problematic for Prologis given GAAP depreciation distortions. If using PEG, substitute AFFO growth for EPS growth to get meaningful comparisons against industrial REIT peers. The metric may still undervalue Prologis' market leadership, development capabilities, and secular e-commerce tailwinds driving logistics real estate demand.

Methodology

Prologis offers a meaningful dividend that must distribute most FFO as a REIT, with PEGY providing better total return visibility than standalone PEG. The dividend represents cash generation from the global logistics portfolio. For REITs, combine dividend yield with AFFO growth expectations rather than using traditional earnings-based PEGY calculations.