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 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. 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 5% of the company's capital (with equity being the remaining amount). Approximately only 14.19% 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 53.18% 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 CLDT, CUBE, WRE, RPAI, and SBAC.