What Recent Weakness in Shurgard Stock Means for Its True Value in 2025

If you are weighing whether to buy, sell, or simply watch Shurgard Self Storage, you are definitely not alone. The company’s recent share price movements have caught the attention of more than a few investors. Shurgard’s stock closed most recently at 32.05, and if you zoom out just a little, you will notice a clear trend: down 2.1% over the last week, off 6.8% in the past month, and down a notable 12.6% so far this year. Go back further, and the 1-year and 5-year numbers show a decline of 23.7% and 7.1% respectively. That is quite a slide for a company many once saw as a steady, defensive pick in the self-storage sector.

But here is where it gets interesting. While market sentiment may have cooled, Shurgard Self Storage currently stands out with a valuation score of 6 out of 6, meaning the stock is considered undervalued in every major check applied to it. This kind of clean sweep is rare, and it is why investors are starting to re-examine whether a turnaround could be on the horizon, especially as broader market dynamics shift and investors seek value plays.

So, how does Shurgard stack up when you put its numbers under the microscope? In the next section, we will break down how the company fares on key valuation methods. And that is not all. Stick around for an even more practical way to look at what "value" really means for you as an investor.

Why Shurgard Self Storage is lagging behind its peers

Approach 1: Shurgard Self Storage Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates what a business is worth today by projecting its future funds from operations and discounting those amounts back to present value, reflecting the time value of money. For Shurgard Self Storage, analysts use a two-stage method based on Free Cash Flow to Equity, with recent free cash flow reported at €226.6 million.

Looking forward, analysts project free cash flow figures up to five years out. Subsequent years are extrapolated by Simply Wall St. By 2027, Shurgard’s free cash flow is expected to be about €196.9 million, and by 2035, long-range estimates reach around €251.6 million, discounted appropriately for risk and time. This approach captures anticipated growth and future profitability, all measured in euros.

The result is a DCF model that gives Shurgard Self Storage an intrinsic value of €49.53 per share. With shares currently trading at €32.05, this implies the stock is trading at a significant discount of 35.3%. In simple terms, the market appears to be undervaluing Shurgard’s long-term cash-generating ability based on current projections.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Shurgard Self Storage.

Our Discounted Cash Flow (DCF) analysis suggests Shurgard Self Storage is undervalued by 35.3%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Shurgard Self Storage Price vs Earnings

For profitable companies like Shurgard Self Storage, the Price-to-Earnings (PE) ratio is a widely used valuation tool. The PE ratio shows how much investors are paying for a euro of earnings, making it a fast and intuitive way to compare companies. A company with high anticipated growth or lower risk typically deserves a higher PE ratio, while mature companies or those facing uncertainty generally trade at lower PEs.

Currently, Shurgard trades at a PE ratio of 5.6x, which is significantly below both the Specialized REITs industry average of 17.7x and a peer group average of 15.4x. On the surface, this suggests the market is pricing the stock quite conservatively relative to its sector peers. However, simple peer or industry comparisons do not account for differences in factors such as growth prospects, risk, and profitability.

This is where Simply Wall St's proprietary "Fair Ratio" comes in. The Fair Ratio for Shurgard is calculated at 9.3x, reflecting not just the company's earnings growth, but also its profit margin, market capitalization, risk exposure, and industry specifics. Because the Fair Ratio synthesizes all these relevant factors, it is a more tailor-made signal of whether the stock is truly a bargain or not, unlike a basic industry average.

Comparing Shurgard’s actual PE ratio of 5.6x to its Fair Ratio of 9.3x, the stock appears undervalued by this measure. The sizable gap suggests the market is being overly cautious given Shurgard's company-specific fundamentals.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose Your Shurgard Self Storage Narrative

Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your story or perspective about a company, linking your own forecasts and assumptions (such as future revenue, margins, and fair value) directly to what you think makes the business tick.

Narratives let you connect the key drivers of a company’s outlook with a financial forecast and, ultimately, a fair value. Rather than relying solely on broad valuation ratios, you can express your view of what will shape Shurgard’s future, mapping it to custom numbers and clear scenarios.

On Simply Wall St’s Community page, millions of investors are already using Narratives, an accessible tool that updates dynamically as new news or earnings data emerge. This means you can stay in control, tracking whether your personal fair value is above (supporting a buy decision) or below (hinting at a sell) the latest market price, and adjusting your outlook as conditions change.

For example, some analysts see Shurgard as worth up to €48.0 per share if urbanization and technology trends support strong earnings. Others believe it could be closer to €32.0 if competition and costs become major headwinds. Narratives help you decide which story makes the most sense for you.

Do you think there's more to the story for Shurgard Self Storage? Create your own Narrative to let the Community know!

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.

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