Is Acadia Realty Trust overvalued or undervalued?

As of 29 July 2025, Acadia Realty Trust's valuation grade has moved from fair to risky, indicating a shift in investor sentiment. The company appears to be overvalued, particularly when compared to its peers. Key valuation ratios include a P/E ratio of 97, an EV to EBITDA of 11.66, and a Price to Book Value of 1.13, which are significantly higher than those of its peers such as OUTFRONT Media, Inc. with a P/E of 24.95 and InvenTrust Properties Corp. at 19.73.
In the peer comparison, Acadia Realty Trust's high P/E ratio and low ROE of 1.17% suggest that it is not generating sufficient returns relative to its price. The recent stock performance shows that while Acadia Realty Trust outperformed the S&P 500 in the short term (3.03% vs. 1.05% over the past week), it has significantly underperformed over the longer term, with a year-to-date return of -15.69% compared to the S&P 500's 12.22%. This further reinforces the notion that the stock may be overvalued in the current market environment.