Extra Space Storage Inc (EXR) Stock: How Does it Score on Fundamental Metrics?

InvestorsObserver gives Extra Space Storage Inc (EXR) a weak valuation score of 17 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. EXR currently holds a better value than 17% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

EXR gets a 17 Valuation Rank today. Find out what this means to you and get the rest of the rankings on EXR!

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Metrics Analysis

EXR has a trailing twelve month Price to Earnings (PE) ratio of 37.4. The historical average of roughly 15 shows a poor value for EXR stock as investors are paying higher share prices relative to the company's earnings. EXR's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 5.37 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. EXR's 12-month-forward PE to Growth (PEG) ratio of 3.77 is considered a poor value as the market is overvaluing EXR in relation to the company's projected earnings growth due. EXR's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

All together these valuation metrics paint a pretty poor picture for EXR at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for EXR are worse than the average of the market resulting in a valuation score of 17. Click Here to get the full Report on Extra Space Storage Inc (EXR) stock.