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:
Below please find a table outlining a discounted cash flow forecast for PSB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Ps Business Parks Inc ranked in the 61th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 130.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PSB, they are:
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 0% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
PSB'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 68.34% of tickers in our DCF set.
As a business, Ps Business Parks Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Real Estate), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WSR, PRSI, HST, XHR, and WRI 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.