Intrinsic value of Extra Space Storage - EXR

Previous Close

$87.35

  Intrinsic Value

$4.46

stock screener

  Rating & Target

str. sell

-95%

Previous close

$87.35

 
Intrinsic value

$4.46

 
Up/down potential

-95%

 
Rating

str. sell

Our model is not good at valuating stocks of financial companies, such as EXR.

We calculate the intrinsic value of EXR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 11.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  26.85
  26.90
  24.71
  22.74
  20.97
  19.37
  17.93
  16.64
  15.47
  14.43
  13.48
  12.64
  11.87
  11.19
  10.57
  10.01
  9.51
  9.06
  8.65
  8.29
  7.96
  7.66
  7.40
  7.16
  6.94
  6.75
  6.57
  6.41
  6.27
  6.15
  6.03
Revenue, $m
  992
  1,259
  1,570
  1,927
  2,331
  2,782
  3,281
  3,827
  4,419
  5,057
  5,739
  6,464
  7,232
  8,040
  8,890
  9,780
  10,710
  11,680
  12,691
  13,742
  14,836
  15,973
  17,154
  18,382
  19,658
  20,984
  22,363
  23,798
  25,291
  26,845
  28,464
Variable operating expenses, $m
 
  324
  403
  495
  599
  715
  843
  984
  1,136
  1,300
  1,475
  1,661
  1,859
  2,066
  2,285
  2,513
  2,752
  3,002
  3,261
  3,532
  3,813
  4,105
  4,409
  4,724
  5,052
  5,393
  5,747
  6,116
  6,500
  6,899
  7,315
Fixed operating expenses, $m
 
  301
  309
  317
  325
  333
  341
  349
  358
  367
  376
  386
  395
  405
  415
  426
  436
  447
  459
  470
  482
  494
  506
  519
  532
  545
  559
  573
  587
  602
  617
Total operating expenses, $m
  542
  625
  712
  812
  924
  1,048
  1,184
  1,333
  1,494
  1,667
  1,851
  2,047
  2,254
  2,471
  2,700
  2,939
  3,188
  3,449
  3,720
  4,002
  4,295
  4,599
  4,915
  5,243
  5,584
  5,938
  6,306
  6,689
  7,087
  7,501
  7,932
Operating income, $m
  450
  634
  858
  1,115
  1,407
  1,735
  2,097
  2,494
  2,925
  3,390
  3,888
  4,417
  4,978
  5,569
  6,190
  6,841
  7,521
  8,231
  8,971
  9,741
  10,541
  11,374
  12,239
  13,139
  14,074
  15,046
  16,057
  17,109
  18,204
  19,344
  20,532
EBITDA, $m
  633
  898
  1,187
  1,519
  1,896
  2,318
  2,785
  3,296
  3,851
  4,450
  5,090
  5,772
  6,493
  7,254
  8,053
  8,890
  9,765
  10,678
  11,630
  12,620
  13,650
  14,721
  15,834
  16,991
  18,193
  19,443
  20,743
  22,095
  23,503
  24,969
  26,496
Interest expense (income), $m
  122
  151
  196
  249
  310
  379
  456
  541
  635
  736
  845
  961
  1,085
  1,216
  1,354
  1,499
  1,651
  1,810
  1,976
  2,148
  2,328
  2,515
  2,709
  2,911
  3,120
  3,338
  3,565
  3,800
  4,045
  4,300
  4,566
Earnings before tax, $m
  413
  483
  661
  866
  1,097
  1,355
  1,641
  1,953
  2,291
  2,654
  3,043
  3,456
  3,893
  4,353
  4,836
  5,341
  5,870
  6,421
  6,995
  7,592
  8,213
  8,859
  9,530
  10,228
  10,954
  11,708
  12,492
  13,309
  14,159
  15,044
  15,967
Tax expense, $m
  16
  130
  179
  234
  296
  366
  443
  527
  618
  717
  822
  933
  1,051
  1,175
  1,306
  1,442
  1,585
  1,734
  1,889
  2,050
  2,218
  2,392
  2,573
  2,762
  2,957
  3,161
  3,373
  3,593
  3,823
  4,062
  4,311
Net income, $m
  366
  353
  483
  632
  801
  989
  1,198
  1,425
  1,672
  1,938
  2,221
  2,523
  2,842
  3,177
  3,530
  3,899
  4,285
  4,687
  5,106
  5,542
  5,996
  6,467
  6,957
  7,467
  7,996
  8,547
  9,119
  9,715
  10,336
  10,982
  11,656

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  44
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  7,091
  8,928
  11,134
  13,666
  16,531
  19,733
  23,271
  27,143
  31,344
  35,866
  40,702
  45,845
  51,288
  57,024
  63,050
  69,361
  75,957
  82,837
  90,005
  97,463
  105,220
  113,282
  121,661
  130,368
  139,417
  148,823
  158,604
  168,778
  179,367
  190,391
  201,874
Adjusted assets (=assets-cash), $m
  7,047
  8,928
  11,134
  13,666
  16,531
  19,733
  23,271
  27,143
  31,344
  35,866
  40,702
  45,845
  51,288
  57,024
  63,050
  69,361
  75,957
  82,837
  90,005
  97,463
  105,220
  113,282
  121,661
  130,368
  139,417
  148,823
  158,604
  168,778
  179,367
  190,391
  201,874
Revenue / Adjusted assets
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
Average production assets, $m
  6,236
  7,913
  9,868
  12,112
  14,652
  17,490
  20,626
  24,058
  27,781
  31,789
  36,075
  40,634
  45,458
  50,542
  55,883
  61,477
  67,323
  73,421
  79,773
  86,384
  93,259
  100,405
  107,831
  115,548
  123,569
  131,906
  140,575
  149,593
  158,977
  168,748
  178,926
Working capital, $m
  0
  -55
  -69
  -85
  -103
  -122
  -144
  -168
  -194
  -223
  -253
  -284
  -318
  -354
  -391
  -430
  -471
  -514
  -558
  -605
  -653
  -703
  -755
  -809
  -865
  -923
  -984
  -1,047
  -1,113
  -1,181
  -1,252
Total debt, $m
  4,306
  5,602
  7,120
  8,862
  10,833
  13,036
  15,471
  18,135
  21,024
  24,135
  27,463
  31,001
  34,746
  38,693
  42,838
  47,181
  51,718
  56,452
  61,383
  66,515
  71,851
  77,398
  83,163
  89,153
  95,379
  101,850
  108,579
  115,579
  122,864
  130,449
  138,349
Total liabilities, $m
  4,847
  6,142
  7,660
  9,402
  11,373
  13,576
  16,011
  18,675
  21,564
  24,675
  28,003
  31,541
  35,286
  39,233
  43,378
  47,721
  52,258
  56,992
  61,923
  67,055
  72,391
  77,938
  83,703
  89,693
  95,919
  102,390
  109,119
  116,119
  123,404
  130,989
  138,889
Total equity, $m
  2,245
  2,786
  3,474
  4,264
  5,158
  6,157
  7,261
  8,469
  9,779
  11,190
  12,699
  14,304
  16,002
  17,792
  19,672
  21,641
  23,699
  25,845
  28,081
  30,409
  32,829
  35,344
  37,958
  40,675
  43,498
  46,433
  49,484
  52,659
  55,962
  59,402
  62,985
Total liabilities and equity, $m
  7,092
  8,928
  11,134
  13,666
  16,531
  19,733
  23,272
  27,144
  31,343
  35,865
  40,702
  45,845
  51,288
  57,025
  63,050
  69,362
  75,957
  82,837
  90,004
  97,464
  105,220
  113,282
  121,661
  130,368
  139,417
  148,823
  158,603
  168,778
  179,366
  190,391
  201,874
Debt-to-equity ratio
  1.918
  2.010
  2.050
  2.080
  2.100
  2.120
  2.130
  2.140
  2.150
  2.160
  2.160
  2.170
  2.170
  2.170
  2.180
  2.180
  2.180
  2.180
  2.190
  2.190
  2.190
  2.190
  2.190
  2.190
  2.190
  2.190
  2.190
  2.190
  2.200
  2.200
  2.200
Adjusted equity ratio
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312
  0.312

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  366
  353
  483
  632
  801
  989
  1,198
  1,425
  1,672
  1,938
  2,221
  2,523
  2,842
  3,177
  3,530
  3,899
  4,285
  4,687
  5,106
  5,542
  5,996
  6,467
  6,957
  7,467
  7,996
  8,547
  9,119
  9,715
  10,336
  10,982
  11,656
Depreciation, amort., depletion, $m
  183
  264
  329
  404
  488
  583
  688
  802
  926
  1,060
  1,203
  1,354
  1,515
  1,685
  1,863
  2,049
  2,244
  2,447
  2,659
  2,879
  3,109
  3,347
  3,594
  3,852
  4,119
  4,397
  4,686
  4,986
  5,299
  5,625
  5,964
Funds from operations, $m
  548
  617
  812
  1,036
  1,289
  1,572
  1,885
  2,227
  2,598
  2,997
  3,424
  3,877
  4,357
  4,862
  5,393
  5,948
  6,529
  7,135
  7,765
  8,422
  9,104
  9,814
  10,552
  11,318
  12,115
  12,944
  13,805
  14,702
  15,635
  16,607
  17,620
Change in working capital, $m
  9
  -12
  -14
  -16
  -18
  -20
  -22
  -24
  -26
  -28
  -30
  -32
  -34
  -36
  -37
  -39
  -41
  -43
  -44
  -46
  -48
  -50
  -52
  -54
  -56
  -58
  -61
  -63
  -66
  -68
  -71
Cash from operations, $m
  539
  628
  826
  1,052
  1,307
  1,592
  1,907
  2,251
  2,624
  3,025
  3,454
  3,909
  4,391
  4,898
  5,430
  5,988
  6,570
  7,177
  7,810
  8,468
  9,153
  9,864
  10,604
  11,372
  12,171
  13,002
  13,866
  14,765
  15,701
  16,675
  17,691
Maintenance CAPEX, $m
  0
  -208
  -264
  -329
  -404
  -488
  -583
  -688
  -802
  -926
  -1,060
  -1,203
  -1,354
  -1,515
  -1,685
  -1,863
  -2,049
  -2,244
  -2,447
  -2,659
  -2,879
  -3,109
  -3,347
  -3,594
  -3,852
  -4,119
  -4,397
  -4,686
  -4,986
  -5,299
  -5,625
New CAPEX, $m
  -1,115
  -1,677
  -1,955
  -2,244
  -2,539
  -2,838
  -3,136
  -3,432
  -3,723
  -4,008
  -4,287
  -4,558
  -4,824
  -5,085
  -5,341
  -5,594
  -5,846
  -6,098
  -6,353
  -6,611
  -6,875
  -7,146
  -7,426
  -7,717
  -8,020
  -8,337
  -8,669
  -9,018
  -9,385
  -9,771
  -10,178
Cash from investing activities, $m
  -1,032
  -1,885
  -2,219
  -2,573
  -2,943
  -3,326
  -3,719
  -4,120
  -4,525
  -4,934
  -5,347
  -5,761
  -6,178
  -6,600
  -7,026
  -7,457
  -7,895
  -8,342
  -8,800
  -9,270
  -9,754
  -10,255
  -10,773
  -11,311
  -11,872
  -12,456
  -13,066
  -13,704
  -14,371
  -15,070
  -15,803
Free cash flow, $m
  -493
  -1,257
  -1,394
  -1,521
  -1,636
  -1,734
  -1,812
  -1,868
  -1,900
  -1,909
  -1,892
  -1,852
  -1,788
  -1,702
  -1,595
  -1,469
  -1,325
  -1,165
  -990
  -802
  -602
  -391
  -169
  61
  299
  546
  800
  1,061
  1,330
  1,605
  1,888
Issuance/(repayment) of debt, $m
  756
  1,296
  1,518
  1,742
  1,971
  2,203
  2,434
  2,664
  2,890
  3,111
  3,327
  3,538
  3,745
  3,947
  4,146
  4,342
  4,538
  4,734
  4,931
  5,132
  5,336
  5,547
  5,765
  5,990
  6,226
  6,472
  6,729
  7,000
  7,285
  7,585
  7,901
Issuance/(repurchase) of shares, $m
  125
  232
  205
  158
  93
  9
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  829
  1,528
  1,723
  1,900
  2,064
  2,212
  2,434
  2,664
  2,890
  3,111
  3,327
  3,538
  3,745
  3,947
  4,146
  4,342
  4,538
  4,734
  4,931
  5,132
  5,336
  5,547
  5,765
  5,990
  6,226
  6,472
  6,729
  7,000
  7,285
  7,585
  7,901
Total cash flow (excl. dividends), $m
  336
  272
  330
  378
  428
  478
  622
  796
  989
  1,203
  1,435
  1,687
  1,957
  2,245
  2,550
  2,873
  3,213
  3,569
  3,941
  4,330
  4,735
  5,156
  5,595
  6,051
  6,525
  7,017
  7,529
  8,061
  8,614
  9,190
  9,789
Retained Cash Flow (-), $m
  -156
  -585
  -688
  -790
  -894
  -999
  -1,104
  -1,208
  -1,311
  -1,411
  -1,509
  -1,605
  -1,698
  -1,790
  -1,880
  -1,969
  -2,058
  -2,147
  -2,236
  -2,327
  -2,420
  -2,516
  -2,614
  -2,717
  -2,823
  -2,935
  -3,052
  -3,174
  -3,304
  -3,440
  -3,583
Prev. year cash balance distribution, $m
 
  44
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -269
  -359
  -412
  -466
  -521
  -482
  -412
  -321
  -208
  -74
  82
  259
  455
  670
  904
  1,155
  1,422
  1,705
  2,003
  2,315
  2,641
  2,981
  3,335
  3,702
  4,083
  4,478
  4,887
  5,311
  5,750
  6,206
Discount rate, %
 
  10.10
  10.61
  11.14
  11.69
  12.28
  12.89
  13.53
  14.21
  14.92
  15.67
  16.45
  17.27
  18.14
  19.05
  20.00
  21.00
  22.05
  23.15
  24.31
  25.52
  26.80
  28.14
  29.55
  31.02
  32.57
  34.20
  35.91
  37.71
  39.59
  41.57
PV of cash for distribution, $m
 
  -244
  -293
  -300
  -299
  -292
  -233
  -169
  -111
  -60
  -17
  15
  38
  52
  58
  59
  55
  48
  40
  32
  25
  18
  13
  9
  6
  4
  2
  1
  1
  0
  0
Current shareholders' claim on cash, %
  100
  97.9
  96.4
  95.6
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1
  95.1

Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, manages, acquires, develops and redevelops self-storage properties located throughout the United States. The Company operates through three segments: rental operations; tenant reinsurance, and property management, acquisition and development. The Company's rental operations activities include rental operations of stores in which it has an ownership interest. The Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in its stores. The Company's property management, acquisition and development activities include managing, acquiring, developing and selling stores. The Company's interest in its stores is held through its operating partnership, Extra Space Storage LP (the Operating Partnership). Its primary assets are general partner and limited partner interests in the Operating Partnership.

FINANCIAL RATIOS  of  Extra Space Storage (EXR)

Valuation Ratios
P/E Ratio 30
Price to Sales 11.1
Price to Book 4.9
Price to Tangible Book
Price to Cash Flow 20.4
Price to Free Cash Flow -19.1
Growth Rates
Sales Growth Rate 26.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 190.4%
Cap. Spend. - 3 Yr. Gr. Rate 25.2%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 191.8%
Total Debt to Equity 191.8%
Interest Coverage 4
Management Effectiveness
Return On Assets 7.3%
Ret/ On Assets - 3 Yr. Avg. 6.2%
Return On Total Capital 6%
Ret/ On T. Cap. - 3 Yr. Avg. 4.8%
Return On Equity 16.9%
Return On Equity - 3 Yr. Avg. 12.3%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 74.5%
Gross Margin - 3 Yr. Avg. 72.8%
EBITDA Margin 72.4%
EBITDA Margin - 3 Yr. Avg. 63.3%
Operating Margin 45.4%
Oper. Margin - 3 Yr. Avg. 42%
Pre-Tax Margin 41.6%
Pre-Tax Margin - 3 Yr. Avg. 33.8%
Net Profit Margin 36.9%
Net Profit Margin - 3 Yr. Avg. 29.5%
Effective Tax Rate 3.9%
Eff/ Tax Rate - 3 Yr. Avg. 4.1%
Payout Ratio 100.5%

EXR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EXR stock intrinsic value calculation we used $992 million for the last fiscal year's total revenue generated by Extra Space Storage. The default revenue input number comes from 2016 income statement of Extra Space Storage. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our EXR stock valuation model: a) initial revenue growth rate of 26.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10.1%, whose default value for EXR is calculated based on our internal credit rating of Extra Space Storage, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Extra Space Storage.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of EXR stock the variable cost ratio is equal to 25.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $294 million in the base year in the intrinsic value calculation for EXR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Extra Space Storage.

Corporate tax rate of 27% is the nominal tax rate for Extra Space Storage. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the EXR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for EXR are equal to 628.6%.

Life of production assets of 34.1 years is the average useful life of capital assets used in Extra Space Storage operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for EXR is equal to -4.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2245 million for Extra Space Storage - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 125.963 million for Extra Space Storage is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Extra Space Storage at the current share price and the inputted number of shares is $11.0 billion.

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COMPANY NEWS

▶ At $85.67, Is It Time To Buy Extra Space Storage Inc (EXR)?   [Nov-16-17 02:07PM  Simply Wall St.]
▶ REIT Stock With 3.6% Dividend Trading In Buy Zone   [Nov-06-17 10:50AM  Investor's Business Daily]
▶ Extra Space Storage reports 3Q results   [Nov-01-17 05:01PM  Associated Press]
▶ Extra Space Storage Inc. Provides Hurricane Irma Update   [Sep-14-17 07:17PM  PR Newswire]
▶ [$$] Life Storage Set to Top Extra Space   [Sep-12-17 11:12AM  Barrons.com]
▶ Harvey will hit these industries toonot just oil & gas: NYSE trader   [Aug-30-17 01:35PM  Yahoo Finance Video]
▶ Extra Space Storage reports 2Q results   [Aug-01-17 10:56PM  Associated Press]
▶ How Analysts View Public Storage   [09:06AM  Market Realist]
▶ 3 Stocks to Add to Your Social Security Income   [Jul-07-17 02:02PM  Motley Fool]
▶ How Analysts View Public Storage   [Jun-28-17 07:36AM  Market Realist]
▶ Where Public Storage Stands Compared to Its Peers   [Jun-27-17 10:36AM  Market Realist]
▶ Focus on Quality Helps Public Storage Maintain Occupancy   [Jun-26-17 07:38AM  Market Realist]
▶ The 3 Best Real Estate Stocks to Buy in 2017   [May-26-17 01:33PM  Motley Fool]
▶ Extra Space Storage reports 1Q results   [Apr-26-17 04:58PM  Associated Press]
▶ A Look at Investing in Storage REITs   [Apr-04-17 12:24PM  Investopedia]
▶ How to Make Money Off American's Love of Clutter   [Apr-01-17 11:21AM  Motley Fool]
Financial statements of EXR
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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