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:
Below please find a table outlining a discounted cash flow forecast for PSA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Public Storage ranked in the 24th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 63.33%. The most interesting components of our discounted cash flow analysis for Public Storage ended up being:
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than only 15.93% 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 43.06% 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
For other companies in the Real Estate that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PSA, try OUT, CSGP, RLGY, RPAI, and SBAC.
Insider buying increased significantly last week, with insiders purchasing $108.3 million of stock compared to $31.16 million in the week prior. Selling also increased significantly, with insiders selling $2.07 billion of stock last week compared to $749.85 million in the week prior. Sell/Buy Ratio: The insider Sell/Buy ratio is calculated...
Introduction Since September last year, when Public Storage, Inc. (PSA) was the first company since 2016 to issue preferred stock with a nominal yield of below the 5% threshold with PSA-I (4.875% nominal yield), companies began to cross this threshold more and more often, issuing their exchange-traded fixed-income securities with...
Public Storage (NYSE:PSA) announced today it intends to release its second quarter 2020 earnings results on Wednesday, August 5, 2020. A conference call is scheduled for Thursday, August 6, 2020, at 9:00 a.m. (PDT) to discuss these results.
The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]