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 59.17%. As for the metrics that stood out in our discounted cash flow analysis of Public Storage, consider:
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 15.94% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 42.75% 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 just 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 APLE, RPAI, CSGP, RLGY, and OUT.
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...
Shares of Public Storage (NASDAQ: PSA) saw some unusual options activity on Monday. Following the unusual option alert, the stock price moved up to $220.66. * Sentiment: BEARISH * Option Type: SWEEP * Trade Type: CALL * Expiration Date: 2020-10-16 * Strike Price: $230.00 * Volume: 358 * Open Interest: 150Three Indications Of Unusual Options Activity Extraordinarily large volume is one indication of unusual options activity. Volume refers to the total shares contracts traded in a day when discussing options activity. Open interest describes unsettled contracts that have been traded but not closed by a counter-party. In other words, for each contract buyer, there must be a seller. A purchased contract remains open until a seller closes it, and vice versa.When a contract has an expi...