Is AGNC Investment Corp. overvalued or undervalued?

As of 24 July 2023, AGNC Investment Corp. has moved from a risky to a very attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 20, a Price to Book Value of 0.93, and an impressive Dividend Yield of 860.88%. Its Return on Capital Employed (ROCE) stands at 41.79%, indicating strong profitability relative to its capital.
In comparison to its peers, AGNC Investment Corp. has a lower P/E ratio than Omega Healthcare Investors, Inc. at 22.98 and Lamar Advertising Co. at 29.21, suggesting it is trading at a discount relative to these companies. Additionally, its EV to EBITDA ratio of 2.18 is on par with its own valuation, while peers like NNN REIT, Inc. and Starwood Property Trust, Inc. are also categorized as very attractive, with P/E ratios of 19.64 and 22.03, respectively. Despite recent underperformance against the S&P 500 over the past year, AGNC's valuation metrics indicate it is positioned favorably in the current market environment.