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Company name Public Storage
Stock ticker PSA
Live stock price [stckqut]PSA[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Good
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $173.74
Target stock price (averages with growth) $126.24
Target stock price (averages with no growth) $70.99
Target stock price (manual assumptions) $177.45

The following company description is from Google Finance: http://www.google.com/finance?q=psa

Public Storage (the Trust) is a real estate investment trust (REIT). As of December 31, 2013, the Trust’s principal business activities included: Domestic Self-Storage, European Self-Storage and Commercial. The Trust acquires, develops, owns, and operates self-storage facilities, which offer storage spaces for lease, on a month-to-month basis, for personal and business use. It is an owner and operator of self-storage facilities in the United States. It has direct and indirect equity interests in 2,200 self-storage facilities (141 million net rentable square feet of space) located in 38 states within the United States operating under the Public Storage brand name. The Trust has a 49% equity interest in Shurgard Europe, with an institutional investor owning the remaining 51% interest. It has a 42% equity interest in PS Business Parks, Inc. (PSB), which owns and operates 28.3 million net rentable square feet of commercial space.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Public Storage as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns namely that this stock is probably trading at exactly the right price and you will not be getting a bargain with this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Public Storage calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $183.55
  • Growth: 0.09
  • Current EPS (TTM): $5.02
  • P/E: 37
  • Future EPS Calc: $7.72
  • Future Stock Price Calc: $285.78
  • Target stock price: $177.44

I hope that this makes you a better investor. [/s2If]