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, Inc. has a higher P/E of 82.34, while Sabra Health Care REIT, Inc. shows a more attractive EV to EBITDA of 9.70, indicating that COPT is positioned reasonably within its peer group.
Despite the fair valuation, the company has underperformed relative to the S&P 500, with a year-to-date return of -8.98% compared to the index's 16.30%. This trend continues in the one-year return, where COPT's -12.52% lags behind the S&P 500's 19.89%, suggesting that while the valuation is fair, the stock may face challenges in the near term.