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 appears to be undervalued, supported by a P/E ratio of 20, a Price to Book Value of 0.93, and an impressive Dividend Yield of 860.88%. In comparison to peers, Omega Healthcare Investors, Inc. has a P/E of 26.03, while Lamar Advertising Co. has a P/E of 29.79, indicating that AGNC is trading at a lower valuation relative to these competitors.
Despite its attractive valuation, AGNC has underperformed against the S&P 500 in multiple periods, with a year-to-date return of 9.66% compared to the S&P 500's 12.22%. Over the past year, AGNC has seen a decline of 5.25%, while the S&P 500 has gained 17.14%. This underperformance may warrant caution, but the current valuation metrics suggest that AGNC Investment Corp. presents a compelling investment opportunity.