Public Storage (PSA)
Valuation Overview•Is Public Storage Overvalued or Undervalued?
Commands a peer premium multiple, but this multiple is justified by a strong intrinsic cash flow value.
Moderate quality score of 63/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street sentiment is generally neutral. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
PSA exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 50.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.2B | +2.7% | +4.9% | +10.6% | +7.3% | |
| EBITDA | $765.0M | — | +3.7% | — | — | |
| Net Income | $526.3M | -13.9% | -25.7% | — | +3.1% | |
| EPS (Diluted) | $2.71 | -15.3% | -27.4% | +7.5% | +4.0% | |
| Free Cash Flow | $625.3M | +7.0% | +2.9% | +9.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 60.6% | 57.6% | 64.1% | 68.2% |
| Operating Margin | 50.8% | 48.3% | 49.4% | 50.5% |
| Net Margin | 39.2% | 42.9% | 58.0% | 56.2% |
| FCF Margin | 63.1% | 59.8% | 61.9% | 64.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.42 | $2.72 | +12.4% | ||
| Q1'26 | $2.49 | $2.60 | +4.4% | ||
| Q4'25 | $4.24 | $4.31 | +1.7% | ||
| Q3'25 | $4.23 | $4.28 | +1.2% | ||
| Q2'25 | $4.06 | $4.12 | +1.5% | ||
| Q1'25 | $4.23 | $4.21 | -0.5% | ||
| Q4'24 | $4.25 | $4.20 | -1.2% | ||
| Q3'24 | $4.20 | $4.23 | +0.7% |
Total return is +13.5% (1Y), lagging the benchmark by -11.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +25.4% | +16.1% | — |
| 1Y | +13.5% | -11.5% | +4.1% |
| 3YCAGR | +7.5% | -12.6% | +12.6% |
| 5YCAGR | +5.2% | -7.3% | +22.5% |
| 10YCAGR | +5.8% | -8.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Public Storage (PSA) valuation, health, and returns.
Public Storage is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. undervalued (implying +23.0% upside to DCF intrinsic value of $391.42)
Public Storage has multiple valuation anchors: DCF Intrinsic Value: $391.42 | Peer Relative Fair Value: $264.10 | Wall Street Analyst Target: $313.30 (implying -1.5% upside). A convergence of these signals offers higher conviction.
Public Storage displays good financial health with a composite quality score of 63/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 8.9%.
Public Storage pays a 4.1% dividend yield, covered by a 129% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Public Storage's current growth trajectory is Decelerating. The company achieved +2.7% 1Y revenue growth and -15.3% 1Y EPS growth, compared to its 3Y revenue CAGR of +4.9%.
Wall Street consensus is Hold based on 36 analysts, beating EPS expectations in 75% of recent quarters with a 5-quarter streak. The consensus price target represents a -1.5% change from current levels.
Investment risks for Public Storage include: -17.1% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.48x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.