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Iron Mountain (IRM) Valuation Check After Recent Share Price Pullback

Simply Wall St · 2d ago

Iron Mountain (IRM) has quietly pulled back, with the stock down around 21% over the past 3 months and roughly 25% year to date. This has raised fresh questions about whether this long term winner is finally on sale.

See our latest analysis for Iron Mountain.

At around $78.86, Iron Mountain’s recent slide, including a sharp 7 day share price return of negative 10.42 percent and a 1 year total shareholder return of negative 19.6 percent, suggests momentum is fading in the short term even though the multi year total shareholder returns remain very strong.

If this pullback has you rethinking your positioning, it might also be a good moment to explore fast growing stocks with high insider ownership for other compelling ideas that have both momentum and aligned insiders.

With earnings still growing and the stock now trading at a steep discount to analyst estimates, has Iron Mountain finally slipped into undervalued territory, or is the market simply resetting expectations and already pricing in future growth?

Most Popular Narrative Narrative: 32.4% Undervalued

With Iron Mountain last closing at $78.86 against a narrative fair value near $116.73, the gap suggests the story diverges sharply from recent price action.

The company's strong pre-leased data center development pipeline in prime locations (Northern Virginia, Richmond, Amsterdam, etc.) and operational leverage are expected to yield accelerating revenue and margin gains as capacity comes online, with mid to high double digit growth outlook supporting long term earnings and cash flow.

Read the complete narrative.

If you are curious what kind of revenue climb, margin reset, and earnings ramp are reflected in that outlook, or how rich a future multiple it assumes, take a closer look.

Result: Fair Value of $116.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, several risks could challenge this upbeat narrative, including execution missteps in capital intensive data center expansion and ongoing pressure on legacy physical storage volumes.

Find out about the key risks to this Iron Mountain narrative.

Another Lens on Valuation

On earnings, Iron Mountain looks far less forgiving. The current price implies a price to earnings ratio of 146.4 times, versus 28.1 times for the US Specialized REITs industry and a fair ratio of 42.2 times, which points to meaningful downside if sentiment normalizes.

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:IRM PE Ratio as at Dec 2025
NYSE:IRM PE Ratio as at Dec 2025

Build Your Own Iron Mountain Narrative

If you see the numbers differently or want to follow your own process, you can build a customized narrative in just a few minutes: Do it your way.

A great starting point for your Iron Mountain research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

Ready for your next move?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.