PSA Fair Value Estimate
$264.1612.4% overvalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Public Storage.
Exchange: NYSESector: Real EstateIndustry: REIT - Industrial
Public Storage, a member of the S&P 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At March 31, 2025, we: (i) owned and/or operated 3,399 self-storage facilities located in 40 states with approximately 247 million net rentable square feet in the United States and (ii) owned a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels:SHUR), which owned 318 self-storage facilities located in seven Western European nations with approximately 18 million net rentable square feet operated under the Shurgard® brand. Our headquarters are located in Glendale, California.
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Carries 32.2x more debt than cash on its balance sheet.
Current Price
$301.55
-0.30%GoodMoat Value
$264.16
12.4% overvaluedProfile
Valuation (TTM)
Market Cap$52.92B
P/E31.06
EV$57.54B
P/B5.72
Shares Out175.51M
P/Sales10.89
Revenue$4.86B
EV/EBITDA18.70
Public Storage. (PSA) Valuation
GoodMoat Analysis
Public Storage appears unfavourable from a value investing perspective. The current price sits above the GoodMoat Target, offering a negative margin of safety, and the P/E multiple is elevated relative to its modest growth rate.
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The valuation assessment reveals several points of concern. First, the current price of $267.63 is 9.6% above the GoodMoat Target of $244.28. According to the framework's DCF bands, this represents a negative margin of safety, placing it in the 'Unfavourable' category (<10% MoS). A value investor typically seeks a margin of safety of 20% or more. Second, the forward P/E of 29.6x is high, especially when contextualized against the company's revenue growth of just 3.3% YoY. This results in a PEG ratio significantly above 1.0, indicating the market is pricing in expectations that may not be supported by current growth fundamentals. While the 4.91% dividend yield and 5.5% FCF yield offer some income appeal, they do not compensate for the premium valuation. The stock's quality, evidenced by a strong ROE of 19.3% and robust operating margin of 46.4%, is not in question, but the price paid for that quality is full. Compared to the framework's valuation principles, the stock is expensive relative to its intrinsic value estimate and its own growth profile. Analysis based on data as of 2024-05-15.
PSA Valuation Metrics
FCF$2.59B
FCF Growth Rate8.38%
EPS Growth (CAGR)2.70%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →PSA Valuation & Fair Value Analysis
Public Storage. (PSA) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Public Storage. is $264.16. The current stock price is $301.55, suggesting the stock is 14.2% overvalued.
The price-to-earnings (P/E) ratio is 31.06. Price-to-book ratio is 5.72. Price-to-sales ratio is 10.89. Enterprise value to EBITDA is 18.70. PEG ratio is 0.93.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Public Storage.'s intrinsic value.