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, indicating a shift towards a less favorable assessment. The company appears to be overvalued based on its P/E ratio of 41, which is significantly higher than peers such as Lamar Advertising Co. at 29.79 and AGNC Investment Corp. at 28.50. Additionally, the EV to EBITDA ratio stands at 15.54, which is higher than the industry average, further supporting the overvaluation thesis.
In comparison to the S&P 500, Agree Realty Corp. has underperformed over the past year with a return of -1.23% versus the S&P 500's 19.89%, and its 5-year return of 13.49% trails the S&P 500's impressive 109.18%. This performance, combined with key ratios such as a PEG ratio of 41.07 and a dividend yield of 3.62%, suggests that the stock may not offer adequate value relative to its price.