CubeSmart engages in ownership, operation, acquisition and development of self-storage facilities. The company was founded in July 2004 and is based in Malvern, Pennsylvania.
CUBE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CUBE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that CubeSmart ranked in the 42th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 32.33%. In terms of the factors that were most noteworthy in this DCF analysis for CUBE, they are:
CubeSmart's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 16.58% of tickers in our DCF set.
CubeSmart's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Real Estate), CubeSmart has a reliance on debt greater than only 13.13% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of CubeSmart? See CUZ, RMAX, VTR, LAMR, and PSB.
It’s been over three months since I last checked on CubeSmart (CUBE), and I felt that the shares were fully valued at the time. Since then, the share price has pulled back by 5% while the S&P 500 (SPY) has risen by 7.6% over the same timeframe. While CubeSmart didn’t...