Is Extra Space Storage, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Extra Space Storage, Inc. moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 2.39, and an EV to EBITDA of 14.71. In comparison to peers, Crown Castle, Inc. has a P/E of 263.90, while VICI Properties, Inc. shows a much lower P/E of 12.89, highlighting that Extra Space Storage is positioned more competitively within its industry.
Despite the recent grade adjustment, the stock has underperformed relative to the S&P 500, with a year-to-date return of -10.74% compared to the index's 16.30%. This trend continues over multiple periods, with a three-year return of -24.74% versus the S&P 500's 76.66%, suggesting that while the valuation has improved, market sentiment may still be cautious.