Is CareTrust REIT, Inc. overvalued or undervalued?

As of 1 May 2025, CareTrust REIT, Inc. has moved from a fair to an attractive valuation grade, indicating a positive shift in its market perception. The company is currently considered undervalued. Key ratios include a P/E ratio of 29, an EV to EBITDA of 18.35, and a PEG ratio of 1.20, which suggest that the company's earnings growth is reasonably priced relative to its current valuation.
In comparison to its peers, CareTrust REIT, Inc. stands out against SL Green Realty Corp., which has a significantly higher P/E ratio of 428.69, and Highwoods Properties, Inc., with a much lower EV to EBITDA of 6.58. This peer comparison reinforces the attractiveness of CareTrust's valuation. Additionally, the company has demonstrated strong performance relative to the S&P 500, with a year-to-date return of 13.38% compared to the index's 2.44%, further supporting the conclusion that CareTrust REIT, Inc. is undervalued in the current market environment.