SmartStop Self Storage REIT (SMA): Assessing Valuation After Recent Share Price Weakness

Simply Wall St.

SmartStop Self Storage REIT (SMA): Assessing Valuation After Recent Share Price Weakness

Simply Wall St

Sat, December 20, 2025 at 10:10 AM EST

3 min read

In this article:

SmartStop Self Storage REIT (SMA) has been drifting slightly lower over the past week, even as its underlying business continues to grow. That disconnect is what makes the stock worth a closer look today.

See our latest analysis for SmartStop Self Storage REIT.

With the share price now at $31.38 and a 90 day share price return of minus 15.3 percent, recent weakness contrasts with earlier resilience and hints that sentiment has cooled even as fundamentals keep improving beneath the surface.

If SmartStop has you rethinking where growth and quality might line up next, it could be worth exploring fast growing stocks with high insider ownership as another source of ideas.

With shares trading below analyst targets despite solid revenue and profit growth, the key question now is whether SmartStop is quietly undervalued or if the market is already pricing in all of its future gains?

Price to Sales of 6.8x: Is it justified?

On a price to sales basis, SmartStop Self Storage REIT trades at 6.8 times revenue, slightly below both its Specialized REIT peers and the broader peer group.

The price to sales ratio compares the company’s market value to its annual revenue, a common yardstick for REITs where earnings can be volatile or currently negative. For SmartStop, this lens helps investors benchmark how much they are paying for each dollar of storage revenue today.

SmartStop screens as a good value against both the US Specialized REITs industry average and its direct peer set, with its 6.8 times ratio coming in just under the 6.9 times level others command. However, viewed against our estimated fair price to sales ratio of 4.7 times, the current multiple still looks rich, suggesting the market is assigning a premium that could compress if expectations ease.

Explore the SWS fair ratio for SmartStop Self Storage REIT

Result: Price-to-Sales of 6.8x (ABOUT RIGHT)

However, softer self storage demand or prolonged losses, even with fast revenue growth, could quickly cool enthusiasm and pressure this valuation premium.

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

Another View: What Our DCF Says

While the price to sales ratio makes SmartStop look only slightly rich, our DCF model paints a much starker picture, suggesting fair value closer to $51.33. That implies the shares could be around 39 percent undervalued, so is the market missing something or is the model too optimistic?

Look into how the SWS DCF model arrives at its fair value.

SMA Discounted Cash Flow as at Dec 2025
SMA Discounted Cash Flow as at Dec 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SmartStop Self Storage REIT for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 914 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Story Continues

Build Your Own SmartStop Self Storage REIT Narrative

If you would rather dig into the numbers yourself and challenge these assumptions, you can build a personalized SmartStop thesis in minutes, Do it your way.

A great starting point for your SmartStop Self Storage REIT research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for your next investment move?

SmartStop might only be one piece of your portfolio puzzle, so do not let other high potential opportunities slip by while you are focused here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SMA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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