Public Storage (PSA) DCF Valuation
Public Storage DCF: $2.1B TTM FFO, $9B net debt, dividend aristocrat, 4% growth.
REIT valuation methodology
FFO (Funds From Operations) as cash-flow proxy. Self-storage demand is recession-resilient.
Real Estate · Founded 1972 · Beta 0.65
Public Storage
Current price: $295.40 · Market cap ≈ $51.7B
Public Storage's $2.1B TTM FFO benefits from self-storage demand + premium brand pricing, with West Coast dense urban portfolio commanding premium rents. The $9B net debt is conservative vs. peers. Dividend aristocrat. FFO is the appropriate cash-flow proxy for REITs; AFFO is more conservative but FFO is standard for comparison. Long-term thesis depends on urban-migration recovery, the Simply Self Storage acquisition integration, and pricing power from the dense urban portfolio. Beta of 0.85 reflects defensive REIT nature.
DCF Valuation Inputs
High-growth phase
Decay/growth normalization
Perpetual (≤ WACC)
Must be > terminal growth
in millions
Enterprise Value
$46M
Equity Value
$37M
Per Share
$0
Upside / (Downside)
-100.0%
PV of explicit FCF
$10M
Terminal value
$52M
PV of terminal
$36M
Terminal % of EV
79.3%
| Year | Growth | FCF ($M) | Discount Factor | PV ($M) |
|---|---|---|---|---|
| 0 | base | $2 | 1.000 | — |
| 1 | 4.0% | $2 | 0.930 | $2 |
| 2 | 4.0% | $2 | 0.865 | $2 |
| 3 | 4.0% | $2 | 0.805 | $2 |
| 4 | 4.0% | $2 | 0.749 | $2 |
| 5 | 4.0% | $3 | 0.697 | $2 |
| Terminal | perpetual | — | — | $36 |
Discount factor = 1 / (1 + WACC)ⁿ. Terminal value computed using the Gordon Growth Model: TV = FCF_N × (1 + g) / (WACC − g), then discounted back to present.
| g ＼ WACC | 5.5% | 6.5% | 7.5% | 8.5% | 9.5% |
|---|---|---|---|---|---|
| 1.5% | $0 | $0 | $0 | $0 | $0 |
| 2.0% | $0 | $0 | $0 | $0 | $0 |
| 2.5% | $0 | $0 | $0 | $0 | $0 |
| 3.0% | $0 | $0 | $0 | $0 | $0 |
| 3.5% | $0 | $0 | $0 | $0 | $0 |
Highlighted cell is your current WACC × terminal-growth assumption. Cells beyond WACC ≤ g are undefined (Gordon Growth fails).
PSA DCF: At Default Assumptions
| Item | Value | Notes |
|---|---|---|
| Current price | $295.40 | Market |
| Intrinsic value (per share) | $0.21 | DCF model output |
| Upside / (Downside) | -99.9% | vs current price |
| Enterprise value | $$46M | PV of explicit FCF + terminal |
| Equity value | $$37M | EV − net debt |
| Key fact | Largest self-storage REIT — 3,500+ facilities nationwide | |
Numbers reflect TTM fundamentals + default DCF assumptions (7.5% WACC, 2.5% terminal growth, 4% Year-1 growth, 4% Years 2+). Use the calculator above to run your own scenario.
PSA Sources & References
- SEC EDGAR: latest 10-K filing, 10-Q filings, and proxy statement for Public Storage (PSA). sec.gov
- Yahoo Finance: real-time price snapshot, analyst consensus growth estimates, and 52-week range.
- S&P Capital IQ: WACC build (cost of equity via CAPM + after-tax cost of debt).
- Federal Reserve Economic Data (FRED): risk-free rate for CAPM, sector beta benchmarks. fred.stlouisfed.org
- Damodaran Online (NYU): Real Estate sector WACC and beta benchmarks for cross-validation. pages.stern.nyu.edu
Related PSA valuation searches
These are common PSA valuation questions answered by the DCF model above.
PSA sector peers & related DCF models
24 cross-links below: same-sector tickers shown first for topical authority, then a broader sample across all 112 covered assets.
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Author
Maya Chen, CFA
Chartered Financial Analyst
Independently reviewed
Dr. Aaron Pak, PhD
Doctor of Kinesiology & Public Health
Last reviewed: August 12, 2026 · Next scheduled review: quarterly
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Cross-checked against authoritative formulas (IRS, NIST, ACSM) and updated for 2025/2026 tax years and rates.
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