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 to peers, Cousins Properties has a higher P/E of 82.34, while Sabra Health Care REIT has a more attractive EV to EBITDA of 9.70, indicating that COPT Defense Properties is positioned reasonably within its industry.
Despite its fair valuation, COPT Defense Properties has underperformed against the S&P 500 over multiple time frames, with a year-to-date return of -8.40% compared to the S&P 500's 16.30%. This trend continues in the one-year return, where the company declined by 11.27% against the S&P 500's gain of 19.89%.