Is Annaly Capital Management, Inc. overvalued or undervalued?

As of 23 October 2024, the valuation grade for Annaly Capital Management, Inc. has moved from risky to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 17, a Price to Book Value of 0.89, and an impressive Dividend Yield of 1134.88%.
In comparison to peers, Annaly's P/E ratio is lower than that of Gaming & Leisure Properties, Inc. at 18.89 and significantly lower than Regency Centers Corp. at 63.58, suggesting that Annaly is trading at a discount relative to its industry counterparts. Despite recent underperformance with a 3-year return of -10.18% compared to the S&P 500's 70.41%, the company’s strong ROCE of 47.39% and a PEG ratio of 0.06 highlight its potential for future growth, reinforcing the attractiveness of its current valuation.