Is Alexandria Real Estate Equities, Inc. overvalued or undervalued?

As of 21 July 2025, the valuation grade for Alexandria Real Estate Equities, Inc. has moved from very attractive to risky, indicating a shift in the company's perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 32, which is significantly higher than its peer average of 44.49, and an EV to EBITDA ratio of 6.41, which also suggests a premium valuation compared to industry standards.
In addition, the Price to Book Value stands at 0.70, indicating that the stock is trading below its book value, yet the low ROCE of 3.35% and ROE of 2.21% raise concerns about profitability. When compared to peers, Alexandria's valuation ratios suggest it is not only lagging behind but also facing significant headwinds, as evidenced by its poor stock performance. Over the past year, the stock has declined by 29.40%, while the S&P 500 has gained 17.14%, highlighting a stark contrast in performance and reinforcing the narrative of overvaluation.