Is CubeSmart overvalued or undervalued?

As of 9 April 2025, CubeSmart's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued, with a P/E ratio of 26, which is higher than its peer Kimco Realty Corp. at 25.49 and significantly lower than W.P. Carey, Inc. at 29.18. Additionally, CubeSmart's EV to EBITDA stands at 14.26, while its peers show a range with Kimco Realty at 10.80 and Regency Centers Corp. at 13.82.
Notably, CubeSmart's Price to Book Value is 3.49, which suggests a premium over its book value compared to the industry average. With a dividend yield of 350.43% and ROCE of 16.97%, the company exhibits strong profitability metrics, yet these do not fully justify its current valuation. The recent stock performance shows a decline of 5.28% over the past year compared to a 10.26% gain in the S&P 500, reinforcing the notion that CubeSmart may not be a compelling investment at its current price level.