Is Public Storage overvalued or undervalued?

As of 28 March 2025, the valuation grade for Public Storage has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a P/E ratio of 27, a Price to Book Value of 5.55, and an EV to EBITDA of 15.82. These ratios suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Public Storage's P/E ratio of 25.9951 is lower than that of American Tower Corp. at 34.1213, but higher than Prologis, Inc. at 26.7154, which is rated as fair. Additionally, while Public Storage's EV to EBITDA is 15.3391, it is still relatively competitive against peers like Welltower, Inc. at 29.8232. Despite a recent stock return of 1.27% over the past year, which lags behind the S&P 500's 10.26%, the overall valuation metrics indicate that Public Storage is not a favorable investment at its current price of 294.76.