Is Public Storage overvalued or undervalued?

As of 30 July 2025, the valuation grade for Public Storage has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company remains overvalued based on its current metrics. The P/E ratio stands at 27, which is significantly higher than the peer average of 28.45, while the EV to EBITDA ratio is 15.82, compared to the peer average of 15.12. Additionally, the Price to Book Value is 5.55, suggesting a premium over its book value relative to peers.
In comparison to notable peers, Welltower, Inc. has a P/E ratio of 88.35, while Prologis, Inc. shows a more reasonable P/E of 31.30, indicating that Public Storage is positioned within a competitive range but still leans towards the expensive side. The stock has underperformed relative to the S&P 500 across multiple periods, with a one-year return of -21.33% compared to the S&P 500's 17.14%, which reinforces the notion of overvaluation.