Apr. 2 at 6:53 PM
$SMA To all those who regularly follow my posts, this is ONE IPO that I couldn't wait to buy. They have 208 locations. The next storage REIT higher in value is
$CUBE , which has 1547 locations. 1547/208 = 7.4375. If you divide the current market capitalization of
$CUBE by 7.4375, you get 9.52B/7.4375 = 1.28B. SmartStop's current market capitalization, based on 27M shares and a current stock price of
$33.00, is 891M. If the overallotment is ultimately purchased (an additional 4.1M shares), then the current market capitalization would be 1.026B. This means
$SMA is undervalued by 254M (1.28B - 1.026B), which means the share price SHOULD BE
$41.16. Therefore the stock is a BUY as it is undervalued by 24.7% relative to its closest peer. Also,
$CUBE has a P/E ratio of 25, while
$EXR has a P/E ratio of 36, and
$PSA has a P/E ratio of 27. Therefore,
$SMA has room for P/E expansion IF its P/E ratio is similar to, or lower than, that of
$CUBE.
