Public Storage Valuation

Is PSA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PSA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PSA ($259.45) is trading below our estimate of fair value ($511.87)

Significantly Below Fair Value: PSA is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for PSA?

Other financial metrics that can be useful for relative valuation.

PSA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue12.9x
Enterprise Value/EBITDA17.8x
PEG Ratio6.9x

Price to Earnings Ratio vs Peers

How does PSA's PE Ratio compare to its peers?

The above table shows the PE ratio for PSA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.3x
EXR Extra Space Storage
35.4x10.0%US$29.6b
CUBE CubeSmart
22.3x2.2%US$9.2b
NSA National Storage Affiliates Trust
19.9x-25.8%US$4.1b
DLR Digital Realty Trust
47.7x-4.5%US$44.3b
PSA Public Storage
23.4x3.4%US$45.7b

Price-To-Earnings vs Peers: PSA is good value based on its Price-To-Earnings Ratio (23.4x) compared to the peer average (31.3x).


Price to Earnings Ratio vs Industry

How does PSA's PE Ratio compare vs other companies in the US Specialized REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PSA is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the Global Specialized REITs industry average (20.3x).


Price to Earnings Ratio vs Fair Ratio

What is PSA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PSA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.4x
Fair PE Ratio37.9x

Price-To-Earnings vs Fair Ratio: PSA is good value based on its Price-To-Earnings Ratio (23.4x) compared to the estimated Fair Price-To-Earnings Ratio (37.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PSA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$259.45
US$311.00
+19.9%
8.0%US$348.00US$250.00n/a17
Apr ’25US$286.50
US$310.35
+8.3%
8.3%US$348.00US$250.00n/a17
Mar ’25US$283.24
US$308.69
+9.0%
8.3%US$348.00US$250.00n/a16
Feb ’25US$286.46
US$311.53
+8.8%
8.1%US$344.00US$250.00n/a15
Jan ’25US$305.00
US$306.43
+0.5%
5.3%US$339.00US$278.00n/a14
Dec ’24US$266.00
US$293.57
+10.4%
6.9%US$330.00US$250.00n/a14
Nov ’24US$242.59
US$307.57
+26.8%
10.0%US$367.00US$250.00n/a14
Oct ’24US$263.52
US$322.92
+22.5%
8.6%US$367.00US$250.00n/a13
Sep ’24US$275.80
US$335.10
+21.5%
6.2%US$367.00US$305.00n/a10
Aug ’24US$279.35
US$341.00
+22.1%
5.8%US$367.00US$309.00n/a10
Jul ’24US$291.88
US$338.64
+16.0%
6.5%US$367.00US$294.00n/a11
Jun ’24US$283.43
US$340.55
+20.2%
6.1%US$367.00US$294.00n/a11
May ’24US$292.59
US$341.36
+16.7%
6.0%US$367.00US$294.00US$259.4511
Apr ’24US$302.14
US$338.18
+11.9%
6.9%US$367.00US$282.00US$286.5011
Mar ’24US$295.70
US$353.17
+19.4%
13.6%US$482.00US$282.00US$283.2412
Feb ’24US$305.94
US$338.92
+10.8%
8.9%US$400.00US$282.00US$286.4613
Jan ’24US$280.19
US$356.64
+27.3%
12.9%US$482.00US$290.00US$305.0014
Dec ’23US$295.48
US$356.64
+20.7%
12.9%US$482.00US$290.00US$266.0014
Nov ’23US$307.64
US$361.08
+17.4%
13.2%US$482.00US$290.00US$242.5913
Oct ’23US$292.81
US$376.46
+28.6%
12.6%US$482.00US$298.00US$263.5213
Sep ’23US$337.78
US$376.31
+11.4%
12.4%US$482.00US$298.00US$275.8013
Aug ’23US$324.42
US$363.14
+11.9%
11.5%US$482.00US$298.00US$279.3514
Jul ’23US$317.37
US$373.23
+17.6%
12.2%US$482.00US$298.00US$291.8813
Jun ’23US$330.62
US$387.86
+17.3%
12.1%US$482.00US$298.00US$283.4314
May ’23US$371.50
US$410.43
+10.5%
10.6%US$482.00US$340.00US$292.5914

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.