Is COPT Defense Properties overvalued or undervalued?

As of 31 October 2025, the valuation grade for COPT Defense Properties moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 45, a Price to Book Value of 4.25, and an EV to EBITDA of 16.98. In comparison, Cousins Properties has a P/E of 82.34 and Sabra Health Care REIT has a more attractive EV to EBITDA of 9.70, highlighting that while COPT is fairly valued, it is still on the higher end relative to some peers.
Despite its fair valuation, COPT Defense Properties has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -8.98% compared to the index's 16.30%. This trend suggests that while the stock may be fairly valued, it faces challenges in delivering competitive returns in the current market environment.