Is Public Storage overvalued or undervalued?

As of 14 November 2025, the valuation grade for Public Storage moved from very expensive to expensive, indicating a slight shift in perception but still suggesting that the stock is overvalued. The company exhibits a P/E ratio of 27, a Price to Book Value of 5.55, and an EV to EBITDA of 15.82, all of which are relatively high compared to its peers. For instance, Welltower, Inc. has a P/E of 88.35, while Prologis, Inc. shows a P/E of 31.30, but these figures highlight the premium that Public Storage commands in its valuation.
In terms of performance, Public Storage has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -8.41% compared to the S&P 500's 14.49%. This trend of underperformance reinforces the notion that the stock may be overvalued, particularly given its high valuation ratios relative to its peers.