PS Business Parks acquires, develops, owns and operates commercial properties, primarily multi-tenant flex, office and industrial space. The company was founded in 1983 and is based in Glendale, California.
PSB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ps Business Parks Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ps Business Parks Inc ranked in the 45th 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 Ps Business Parks Inc ended up being:
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 0.05% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Ps Business Parks Inc'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.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Real Estate).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ALEX, FR, LAMR, RLGY, and CUBE can be thought of as valuation peers to PSB, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
PS Business Parks, Inc. (NYSE:PSB) announced today the tax treatment of the Company’s 2020 dividends. For the tax year ended December 31, 2020, 100% of the distributions for the common stock and all the various series of preferred stock for all four quarters were classified as ordinary income. The Company did not declare a capital gain distribution, nor did it have any undistributed long-term capital gain for 2020.
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PS Business Parks, Inc. (NYSE:PSB) reported operating results for the three and nine months ended September 30, 2020 and announced that it acquired a 246,000 square foot multi-tenant industrial park located in Alexandria, Virginia, for $46.3 million.