Discounted Cash Flow (DCF) Analysis Levered

Public Storage (PSA)

$298.61

+1.49 (+0.50%)
All numbers are in Millions, Currency in USD
Stock DCF: 469.91 | 298.61 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,668.532,754.282,846.822,915.073,415.823,639.123,877.024,130.474,400.494,688.16
Revenue (%)
Operating Cash Flow 1,975.682,061.502,067.642,042.902,543.562,664.262,838.433,023.983,221.673,432.28
Operating Cash Flow (%)
Capital Expenditure -460.68-478.87-187.31-170-270.24-400.10-426.26-454.12-483.81-515.44
Capital Expenditure (%)
Free Cash Flow 1,5151,582.631,880.331,872.902,273.322,264.162,412.172,569.862,737.862,916.84

Weighted Average Cost Of Capital

Share price $ 298.61
Beta 0.392
Diluted Shares Outstanding 174.64
Cost of Debt
Tax Rate 0.33
After-tax Cost of Debt 1.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.542
Total Debt 7,475.28
Total Equity 52,149.85
Total Capital 59,625.13
Debt Weighting 12.54
Equity Weighting 87.46
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,668.532,754.282,846.822,915.073,415.823,639.123,877.024,130.474,400.494,688.16
Operating Cash Flow 1,975.682,061.502,067.642,042.902,543.562,664.262,838.433,023.983,221.673,432.28
Capital Expenditure -460.68-478.87-187.31-170-270.24-400.10-426.26-454.12-483.81-515.44
Free Cash Flow 1,5151,582.631,880.331,872.902,273.322,264.162,412.172,569.862,737.862,916.84
WACC
PV LFCF 1,774.031,8001,826.351,853.091,880.22
SUM PV LFCF 11,102.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.00
Free cash flow (t + 1) 2,975.17
Terminal Value 99,172.42
Present Value of Terminal Value 77,704.19

Intrinsic Value

Enterprise Value 88,806.24
Net Debt 6,740.68
Equity Value 82,065.56
Shares Outstanding 174.64
Equity Value Per Share 469.91