Public Storage (PSA) just made a move that could reshape its growth plans. If you are holding the stock or thinking of jumping in, this is something to watch. The company’s subsidiary, Public Storage Operating Company, has officially priced a public offering of senior notes, with the offering set to close early next month. That cash infusion will go toward paying down existing debt and backing new investments in its self-storage portfolio. This signals that management is actively working to bolster both the balance sheet and future expansion. This announcement has landed in a year where Public Storage’s share price has faced some headwinds, with a decline of roughly 16% over the past twelve months. While momentum has been lacking, especially compared to its longer-term performance, the recent few days did see a minor uptick in the stock. Past three and five-year returns remain positive, suggesting that, despite the recent dip, the fundamentals or long-term thesis may not have entirely changed. With this strategic debt move and a mixed track record over the past year, some investors may be considering whether this is a chance to enter Public Storage before growth returns or whether the market has already priced in what comes next.

Most Popular Narrative: 11.3% Undervalued

According to the most widely followed narrative, Public Storage is considered significantly undervalued at the current price, with analysts projecting higher long-term growth and a fair value target well above today's levels.

Urban densification and the continued shrinkage of residential living space in major metro markets are driving durable demand for self-storage. This benefits Public Storage's occupancy rates and supports long-term revenue growth, as evidenced by robust leasing activity and positive stabilization trends in high-density regions like the West Coast.

Ever wondered why analysts are bullish despite the recent pullback? The explanation comes from ambitious growth forecasts and a profit playbook that could set a new benchmark for the sector. Bold expansion, resilient margins, and powerful demand trends are all factored into one striking valuation. Curious which financial levers are setting this price tag?

Result: Fair Value of $322.74 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent oversupply in key markets or regulatory hurdles, such as potential rent controls, could challenge Public Storage’s projected growth and profitability trajectory.

Find out about the key risks to this Public Storage narrative.

Another View: Market Multiples Tell a Different Story

While the SWS DCF model finds Public Storage undervalued, looking at a market-based valuation approach raises questions. Compared to sector averages, the company appears expensive on its earnings ratio, which could challenge the optimistic growth scenario. Could market sentiment be missing something, or are expectations already priced in?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Public Storage to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Public Storage Narrative

If these perspectives do not match your take or you want a hands-on approach, you can dig into the numbers and shape your own insights in minutes. Do it your way

A great starting point for your Public Storage research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.