Is Extra Space Storage, Inc. overvalued or undervalued?

As of 27 June 2025, the valuation grade for Extra Space Storage, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting high valuation metrics. The company is currently considered overvalued. Key ratios include a P/E ratio of 35, an EV to EBITDA of 14.71, and a PEG ratio of 4.16, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to peers, Extra Space Storage's P/E ratio is higher than that of Prologis, Inc., which stands at 26.72, and American Tower Corp., which has a P/E of 34.12, both of which are also considered expensive. Furthermore, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -2.50% compared to the index's 4.96%. This combination of high valuation ratios and underperformance against the broader market reinforces the conclusion that Extra Space Storage, Inc. is overvalued.