DCF Tool

PSA

Public Storage – Other Financial Vehicles
Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At December 31, 2020, The Company had: interests in 2,548 self-storage facilities located in 38 states with approximately 175 million net rentable square feet in the United States, an approximate 35% common equity interest in Shurgard Self Storage SA which owned 241 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the 'Shurgard' brand and an approximate 42% common equity interest in PS Business Parks, Inc. which owned and operated approximately 28 million rentable square feet of commercial space at December 31, 2020. Its headquarters are located in Glendale, California.
Analysis Results
Intrinsic Value $279.47
Latest Price $287.49
Relative Value 3% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 5.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.91 1.8
2023 2.02 1.79
2024 2.14 1.79
2025 2.27 1.78
2026 2.4 1.77
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 57.7 billion. This corresponds to a present value of 40.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.93 billion. Adding in the terminal value gives a total present value of 49.1 billion.

There are presently 176.0 million outstanding shares, so the intrinsic value per share is 279.47.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 734,599,000
Current Cash 734,599,000
Current Liabilities 482,091,000
Current Debt 0
Non-Cash Working Capital (NCWC) -482,091,000
Change in NCWC 212,564,000
EBIT 1,924,943,000
Tax Provision 0
Depreciation and Amortization 713,428,000
Capital Expenditure -552,219,000
Unlevered Free Cash Flow 2,298,716,000
Current Assets 257,560,000
Current Cash 257,560,000
Current Liabilities 694,655,000
Current Debt 0
Non-Cash Working Capital (NCWC) -694,655,000
Change in NCWC -311,371,000
EBIT 1,513,970,000
Tax Provision 0
Depreciation and Amortization 553,257,000
Capital Expenditure -359,411,000
Unlevered Free Cash Flow 1,396,445,000
Current Assets 409,743,000
Current Cash 409,743,000
Current Liabilities 383,284,000
Current Debt 0
Non-Cash Working Capital (NCWC) -383,284,000
Change in NCWC -12,025,000
EBIT 1,563,122,000
Tax Provision 0
Depreciation and Amortization 512,918,000
Capital Expenditure -379,312,000
Unlevered Free Cash Flow 1,684,703,000
Current Assets 361,218,000
Current Cash 361,218,000
Current Liabilities 371,259,000
Current Debt 0
Non-Cash Working Capital (NCWC) -371,259,000
Change in NCWC -34,058,000
EBIT 1,542,129,000
Tax Provision 0
Depreciation and Amortization 483,646,000
Capital Expenditure -478,869,000
Unlevered Free Cash Flow 1,512,848,000
Current Assets 433,376,000
Current Cash 433,376,000
Current Liabilities 337,201,000
Current Debt 0
Non-Cash Working Capital (NCWC) -337,201,000
Change in NCWC -39,266,000
EBIT 1,517,568,000
Tax Provision 0
Depreciation and Amortization -454,526,000
Capital Expenditure -460,678,000
Unlevered Free Cash Flow 563,098,000
Current Assets 183,688,000
Current Cash 183,688,000
Current Liabilities 297,935,000
Current Debt 0
Non-Cash Working Capital (NCWC) -297,935,000
Change in NCWC -36,357,000
EBIT 1,446,390,000
Tax Provision 0
Depreciation and Amortization -433,314,000
Capital Expenditure -351,351,000
Unlevered Free Cash Flow 625,368,000
Current Assets 104,285,000
Current Cash 104,285,000
Current Liabilities 261,578,000
Current Debt 0
Non-Cash Working Capital (NCWC) -261,578,000
Change in NCWC -14,437,000
EBIT 1,299,490,000
Tax Provision 0
Depreciation and Amortization 426,008,000
Capital Expenditure -294,072,000
Unlevered Free Cash Flow 1,416,989,000
Current Assets 187,712,000
Current Cash 187,712,000
Current Liabilities 247,141,000
Current Debt 0
Non-Cash Working Capital (NCWC) -247,141,000
Change in NCWC -28,783,000
EBIT 1,161,304,000
Tax Provision 0
Depreciation and Amortization 437,114,000
Capital Expenditure -230,183,000
Unlevered Free Cash Flow 1,339,452,000
Current Assets 19,169,000
Current Cash 19,169,000
Current Liabilities 268,458,000
Current Debt 50,100,000
Non-Cash Working Capital (NCWC) -218,358,000
Change in NCWC -16,647,000
EBIT 1,042,660,000
Tax Provision 0
Depreciation and Amortization 387,402,000
Capital Expenditure -172,646,000
Unlevered Free Cash Flow 1,240,769,000
Current Assets 17,239,000
Current Cash 17,239,000
Current Liabilities 334,711,000
Current Debt 133,000,000
Non-Cash Working Capital (NCWC) -201,711,000
Change in NCWC 9,255,000
EBIT 952,516,000
Tax Provision 0
Depreciation and Amortization 358,103,000
Capital Expenditure -77,905,000
Unlevered Free Cash Flow 1,241,969,000

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