Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 4.72%, lower than industry average of 8.57%.

Growth Trajectory

Profitability

In the growth phase company makes 44.44% profit on every dollar of sales, higher than industry average of 31.12%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.51% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
18.26B USD
Equity Value
8.82B USD
FCF Yield
9.41%
Average ROIC
11.31%
Cost of Capital
6.72%
P/E Ratio
23.80x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues4.75B USD4.70B USD
Operating Income or EBIT2.14B USD2.39B USD
Interest Expense290M USD287.40M USD
Book Value Of Equity5.02B USD5.36B USD
Book Value Of Debt10.44B USD9.35B USD
Cash and Marketable Securities1.10B USD447.42M USD
Number of Shares Outstanding175.45M--
Minority interests101.05M USD0 USD
Current Stock Price290.31 USD--
Effective Tax Rate0%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-7.42%
1.14%Company
vs
8.56%Industry
Below Industry
Operating Margin
+13.93%
45.04%Company
vs
31.11%Industry
Above Industry
Public Storage demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.82%
Reinvestment Rate
52.09%
Terminal value represents 85% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 15.52B USD Add
Present Value (Cash Flow Over Next 10 Years) 2.73B USD Add
Value of Operating Assets 18.26B USD Sub-total
Debt 10.44B USD Subtract
Minority Interests 101.04M USD Subtract
Cash 1.10B USD Add
Value of Equity 8.82B USD Sub-total
Number of Shares 175.45M shares Divisor
Estimated Value per Share (Fair Value) 50.29 USD Total
Current Market Price 290.31 USD Reference

Financial Projections

Total FCF Present Value
2.73B USD
Avg Revenue Growth
4.21%
Avg Operating Margin
44.31%
Avg ROIC
11.31%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue4.93B USD5.16B USD5.41B USD5.66B USD5.93B USD6.21B USD6.50B USD6.80B USD7.12B USD7.44B USD7.79B USD
Growth Rate 3.91% 4.71% 4.71% 4.71% 4.71% 4.69% 4.67% 4.64% 4.62% 4.59% 4.59%
PROFITABILITY
Operating Income2.22B USD2.30B USD2.40B USD2.50B USD2.61B USD2.73B USD2.86B USD2.99B USD3.13B USD3.28B USD3.43B USD
Operating Margin 45.04% 44.64% 44.44% 44.24% 44.04% 44.04% 44.04% 44.04% 44.04% 44.04% 44.04%
EBIT (1-tax)2.22B USD2.30B USD2.40B USD2.50B USD2.61B USD2.59B USD2.57B USD2.54B USD2.50B USD2.46B USD2.57B USD
CASH FLOW
Reinvestment1.83B USD1.92B USD2.01B USD2.10B USD2.19B USD2.04B USD2.13B USD2.21B USD2.31B USD2.41B USD1.34B USD
Free Cash Flow389.33M USD387.03M USD394.47M USD401.75M USD419.88M USD552.45M USD445.87M USD328.06M USD198.28M USD43.39M USD1.23B USD
Terminal Value--------------------29.14B USD
Present Value368.98M USD347.63M USD335.80M USD324.12M USD321.04M USD397.83M USD300.52M USD205.68M USD114.93M USD23.11M USD—
EFFICIENCY
ROIC 15.48% 14.24% 13.27% 12.46% 11.75% 10.64% 9.73% 8.90% 8.13% 7.42% 8.82%
Cost of Capital 5.51% 5.51% 5.51% 5.51% 5.51% 6.17% 6.84% 7.50% 8.16% 8.82% 8.83%
Sales/Capital 0.12x 0.12x 0.12x 0.12x 0.12x 0.14x 0.14x 0.14x 0.14x 0.14x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)