SmartStop Self Storage REIT (SMA) has seen some shifts in its stock performance lately, which has prompted investors to revisit its recent results and fundamentals. The stock’s movement over the past month has brought fresh attention to its underlying operations.

See our latest analysis for SmartStop Self Storage REIT.

After a notable climb earlier this year, SmartStop Self Storage REIT’s share price has recently eased back, with a 30-day share price return of -4.12% reflecting fading short-term momentum. Still, the stock is modestly up year-to-date, which suggests that investors continue to weigh its long-term potential and shifting market sentiment.

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With shares now trading at about a 21 percent discount to analyst price targets and a nearly 29 percent discount to intrinsic value, investors may wonder if SmartStop Self Storage REIT is undervalued, or if the market already reflects its future growth.

SmartStop Self Storage REIT currently trades at a price-to-sales ratio of 7.3 times, which is aligned with the US Specialized REITs industry average but much higher than its closest peers. At the last close of $33.47 per share, the stock appears expensive compared to alternative benchmarks.

The price-to-sales ratio measures how much investors are paying for a company’s revenues per share. In the self-storage REIT space, this multiple reflects how the market values recurring rental income streams. A higher ratio can signal optimism about future growth or profitability, but it can also expose investors to downside if growth does not materialize.

Looking deeper, SmartStop’s price-to-sales ratio of 7.3x is notably more expensive than both its peer group average of 5.9x and the estimated fair ratio of 4.2x. This suggests the market may be overestimating the company’s revenue potential relative to the sector. If pricing adjusts toward the fair ratio, there could be significant downside pressure ahead.

Explore the SWS fair ratio for SmartStop Self Storage REIT

Result: Price-to-Sales of 7.3x (OVERVALUED)

However, continued negative net income and the prospect of price corrections remain notable risks that could shift sentiment away from SmartStop Self Storage REIT.

Find out about the key risks to this SmartStop Self Storage REIT narrative.

While multiples hint at an expensive price tag for SmartStop Self Storage REIT, our DCF model paints a different picture. Based on discounted cash flows, shares currently trade about 29 percent below fair value. This may indicate possible undervaluation. Could the market be overlooking this potential?