Discounted Cash Flow (DCF) Analysis Unlevered

Public Storage (PSA)

$300.29

-1.74 (-0.58%)
All numbers are in Millions, Currency in USD
Stock DCF: 456.48 | 300.29 | undervalue

Operating Data

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 (%)
EBITDA 1,909.442,227.182,079.091,966.752,757.472,719.472,897.253,086.653,288.433,503.40
EBITDA (%)
EBIT 1,454.921,743.531,566.181,413.502,044.042,046.412,180.192,322.712,474.562,636.32
EBIT (%)
Depreciation 454.53483.65512.92553.26713.43673.06717.06763.93813.87867.07
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 433.38361.22409.74257.56734.60539.24574.49612.05652.06694.68
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -460.68-478.87-187.31-170-270.24-400.10-426.26-454.12-483.81-515.44
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 300.29
Beta 0.433
Diluted Shares Outstanding 175.57
Cost of Debt
Tax Rate 0.33
After-tax Cost of Debt 1.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.686
Total Debt 7,475.28
Total Equity 52,721.31
Total Capital 60,196.59
Debt Weighting 12.42
Equity Weighting 87.58
Wacc

Build Up Free Cash

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
EBITDA 1,909.442,227.182,079.091,966.752,757.472,719.472,897.253,086.653,288.433,503.40
EBIT 1,454.921,743.531,566.181,413.502,044.042,046.412,180.192,322.712,474.562,636.32
Tax Rate 0.43%0.36%0.34%0.29%0.33%0.35%0.35%0.35%0.35%0.35%
EBIAT 1,448.651,737.201,560.921,409.332,037.392,039.252,172.562,314.592,465.902,627.10
Depreciation 454.53483.65512.92553.26713.43673.06717.06763.93813.87867.07
Accounts Receivable ----------
Inventories ----------
Accounts Payable ----------
Capital Expenditure -460.68-478.87-187.31-170-270.24-400.10-426.26-454.12-483.81-515.44
UFCF 1,442.501,741.981,886.531,792.592,480.582,312.212,463.362,624.392,795.962,978.73
WACC
PV UFCF 2,199.382,228.822,258.652,288.882,319.52
SUM PV UFCF 11,295.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.13
Free cash flow (t + 1) 3,038.31
Terminal Value 97,070.58
Present Value of Terminal Value 75,588.25

Intrinsic Value

Enterprise Value 86,883.50
Net Debt 6,740.68
Equity Value 80,142.82
Shares Outstanding 175.57
Equity Value Per Share 456.48