Is CareTrust REIT, Inc. overvalued or undervalued?

As of 29 July 2025, CareTrust REIT, Inc. has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 29, which is significantly higher than the peer average of 35.16 for similar companies, while the EV to EBITDA ratio is 18.35, also above the industry average of 23.85. Additionally, the PEG ratio of 1.20 suggests that the stock is not priced attractively relative to its growth rate.
In comparison to its peers, National Health Investors, Inc. has a more favorable EV to EBITDA ratio of 13.56, indicating better value, while SL Green Realty Corp. shows a staggering P/E ratio of 731.77, highlighting the disparity in valuation within the sector. Over the past year, CareTrust REIT, Inc. has returned 12.18%, which lags behind the S&P 500's return of 17.14%, further supporting the notion that the stock may be overvalued.