As of December 15, 2025, Life Storage Inc has a Discounted Cash Flow (DCF) derived fair value of $88.12 per share. With the current market price at $133.10, this represents a potential upside of -33.8%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $93.52 |
| DCF Fair Value (10-year) | $88.12 |
| Potential Upside (5-year) | -29.7% |
| Potential Upside (10-year) | -33.8% |
| Discount Rate (WACC) | 5.2% - 7.5% |
Revenue is projected to grow from $1038 million in 12-2022 to $1900 million by 12-2032, representing a compound annual growth rate of approximately 6.2%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2022 | 1038 | 32% |
| 12-2023 | 1121 | 8% |
| 12-2024 | 1191 | 6% |
| 12-2025 | 1284 | 8% |
| 12-2026 | 1346 | 5% |
| 12-2027 | 1454 | 8% |
| 12-2028 | 1555 | 7% |
| 12-2029 | 1601 | 3% |
| 12-2030 | 1678 | 5% |
| 12-2031 | 1797 | 7% |
| 12-2032 | 1900 | 6% |
Net profit margin is expected to improve from 35% in 12-2022 to 31% by 12-2032, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2022 | 366 | 35% |
| 12-2023 | 300 | 27% |
| 12-2024 | 330 | 28% |
| 12-2025 | 367 | 29% |
| 12-2026 | 396 | 29% |
| 12-2027 | 439 | 30% |
| 12-2028 | 472 | 30% |
| 12-2029 | 489 | 31% |
| 12-2030 | 515 | 31% |
| 12-2031 | 554 | 31% |
| 12-2032 | 588 | 31% |
with a 5-year average of $574 million. Projected CapEx is expected to maintain at approximately 68% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2023 | 713 |
| 12-2024 | 858 |
| 12-2025 | 1022 |
| 12-2026 | 886 |
| 12-2027 | 874 |
| 12-2028 | 933 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 9 |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2023 | 924 | 83 | 574 | 2 | 265 |
| 2024 | 1425 | 122 | 814 | 1 | 487 |
| 2025 | 1648 | 136 | 877 | 2 | 633 |
| 2026 | 1558 | 146 | 920 | 1 | 490 |
| 2027 | 1616 | 162 | 993 | 2 | 458 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 93.52 | -29.7% |
| 10-Year DCF (Growth) | 88.12 | -33.8% |
| 5-Year DCF (EBITDA) | 103.58 | -22.2% |
| 10-Year DCF (EBITDA) | 106.53 | -20.0% |
Is Life Storage Inc (LSI) a buy or a sell? Life Storage Inc is definitely a sell. Based on our DCF analysis, Life Storage Inc (LSI) appears to be overvalued with upside potential of -33.8%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $133.10.