InvestorsObserver gives Public Storage (PSA) a weak valuation score of 13 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. PSA currently holds a better value than 13% 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.
Metrics Analysis
PSA's trailing-12-month Price to Earnings (PE) ratio of 33.5 puts it above the historical average of roughly 15. PSA is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. PSA's trailing-12-month earnings per share (EPS) of 7.00 does not justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
PSA currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 6.75. The market is currently overvaluing PSA in relation to its projected growth due to the PEG ratio being above the fair market value of 1. PSA's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.
Summary
All together these valuation metrics paint a pretty poor picture for PSA at its current price due to a overvalued PEG ratio due to strong growth. The PE and PEG for PSA are worse than the average of the market resulting in a valuation score of 13.
Click Here to get the full Stock Score Report on Public Storage (PSA) Stock.
