Public Storage (PSA): Evaluating Valuation as Guidance and Q3 Results Point to Improved Growth Outlook

Public Storage (PSA) just reported third quarter results that showed higher revenue and net income compared to last year. In addition, the company raised its full-year 2025 guidance, which has turned some heads among investors.

See our latest analysis for Public Storage.

Shares of Public Storage have seen notable swings this year, with the latest share price at $272.78 and a 1-year total shareholder return of -15.75%. Despite the recent uptick in quarterly results, the last month’s share price return was -7.35%. This reflects both cautious optimism and ongoing pressure as investors digest news of ramped-up acquisitions and a growing development pipeline. Momentum appears mixed, with long-term holders still in positive territory thanks to a 44% total return over five years. However, short-term price action suggests sentiment remains in flux.

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But with the stock still trading well below analyst price targets despite improving fundamentals, investors are left to wonder if there is genuine value to be found or if the market is fully pricing in the company’s growth prospects.

Most Popular Narrative: 16.4% Undervalued

With Public Storage trading at $272.78, the narrative's fair value lands much higher, highlighting room for upside if projections hold true. The contrast between analyst expectations and the current price underscores optimism in the company's future growth trajectory.

Strategic portfolio expansion, including $1.1 billion in recent acquisitions/development and successful lease-up of new and non-same-store assets, is expected to drive future revenue and NOI growth, positioning the company to benefit from ongoing industry consolidation and market share gains.

Read the complete narrative.

Is the full story hiding in the numbers? The most closely watched narrative projects a bold transformation for Public Storage, thanks to assumptions that challenge market stereotypes and hint at robust, sustained profit growth. Want to spot the linchpin that links growth, margins, and an ambitious fair value? The surprising path to this number just might shake up your outlook on the entire sector.

Result: Fair Value of $326 (UNDERVALUED)

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

However, persistent oversupply in key markets and the risk of new regulatory hurdles could challenge the company’s pricing power and future revenue growth.

Find out about the key risks to this Public Storage narrative.

Build Your Own Public Storage Narrative

If you see things differently or want a hands-on dive into the numbers, you can shape your own story in just a few minutes. Do it your way

A great starting point for your Public Storage research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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