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. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 41, 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 is 15.54, which is also elevated compared to the industry average.
In terms of returns, Agree Realty Corp. has underperformed against the S&P 500 over various periods, with a year-to-date return of 2.68% compared to the S&P 500's 16.30%, and a one-year return of -2.15% versus 19.89% for the index. This underperformance reinforces the notion that the stock may be overvalued given its high valuation ratios relative to its peers and the broader market performance.