Public Storage engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. The company was founded in 1971 and is based in Glendale, California.
PSA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Public Storage with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Public Storage ranked in the 29th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Public Storage ended up being:
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than just 16.17% of the free cash flow producing stocks we're observing.
PSA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 47.27% of tickers in our DCF set.
As a business, Public Storage experienced a tax rate of about 0% over the past twelve months; relative to its sector (Real Estate), this tax rate is higher than only 0% of stocks generating free cash flow.
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 Public Storage? See CSGP, MLP, PCH, OUT, and KW.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Public Storage and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.