Is COPT Defense Properties overvalued or undervalued?

As of 31 October 2025, the valuation grade for COPT Defense Properties moved from expensive to fair, indicating a more favorable assessment of its market position. 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, peers such as Cousins Properties, Inc. have a significantly higher P/E of 82.34, while Sabra Health Care REIT, Inc. is more attractively valued with a P/E of 24.62.
Despite the fair valuation, COPT Defense Properties has underperformed against the S&P 500 over the longer term, with a 1Y return of -10.58% compared to the index's 19.89%. However, it has shown resilience over a 3Y period with a return of 9.88%, suggesting potential for recovery. Overall, the company is fairly valued, but its recent performance raises some caution for investors.