* Note: Prices are in Million (M) USD.
Description:
Public Storage is an American international self storage company headquartered in Glendale, California, that is run as a real estate investment trust (REIT).
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,105 M
Debt : $10,440 M
EBITDA : $3,247 M
Net Debt (Debt - Cash): $9,336 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - industrial
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 17.27
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $1,529 M
Average Revenue: $2,415 M
Revenue Converted To Free Cash Flow (%): 63.3%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $4,696 M
Revenue 4 Years Ago (2020-12-31): $2,915 M
Last 5 Years Average Revenue Growth: 12%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $176 M
Share Count 5 Years Ago (2020-12-31): $175 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $17.22
Trailing 12-Month Earnings Per Share (EPS): $16.90
Average Earnings Per Share (EPS): $17.06
Dividend Per Share (DPS): $12
Payout Ratio: 70%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 14.8%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $295
52-Week Low: $254
Threshold Price (15% Above 52-Week Low): $292
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $50,416 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 25 points to above Public Storage (PSA) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 18 Years Avg P/E (32.28)
× EPS ($17.06) = $550.70.
Last 18 Years Avg PE 32.28, Fair Value PE 15, Industry Based PE 20, Growth Based PE 12, RCFC Based PE 50, ROE Based PE 21.84, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 24.03. Value-Trades has assined P/E value 24.03. Since an average (Current Year EPS + Next Year EPS) earning per share is $17.06.
The fair value of Public Storage (PSA) stock should be (24.03 x $17.06) = $409.94.
