Is Crown Castle, Inc. overvalued or undervalued?

As of 13 March 2025, the valuation grade for Crown Castle, Inc. has moved from very attractive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued, particularly given its high P/E ratio of 98, which is substantially above its peers, such as VICI Properties, Inc. with a P/E of 12.89 and Extra Space Storage, Inc. at 31.82. Additionally, the EV to EBITDA ratio stands at 11.52, further highlighting the disparity in valuation compared to its competitors.
Crown Castle's Price to Book Value is notably negative at -34.39, which raises concerns about the company's asset valuation. The recent stock performance also reinforces this valuation narrative, as Crown Castle has underperformed relative to the S&P 500, with a 1-year return of -21.07% compared to the S&P 500's 17.14%. Overall, the combination of high valuation ratios and poor stock performance suggests that Crown Castle, Inc. is currently overvalued in the market.