Is Agree Realty Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Agree Realty Corp. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 41, which is significantly higher than peers like Lamar Advertising Co. with a P/E of 29.79 and AGNC Investment Corp. at 28.50. Additionally, the EV to EBITDA ratio is 15.54, compared to the industry average of around 12.95 for Lamar Advertising Co., further indicating a premium valuation.
Despite a dividend yield of 3.62% and a ROCE of 5.46%, the high PEG ratio of 41.07 suggests that the growth expectations are not justified by the current price. The recent stock performance also reflects this valuation concern, as Agree Realty Corp. has underperformed against the S&P 500 over various time frames, including a 1-year return of -1.67% compared to 19.89% for the index.