Is CubeSmart overvalued or undervalued?

As of 11 September 2025, the valuation grade for CubeSmart moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued based on its current metrics, with a P/E ratio of 26, which is higher than the peer average of 25.15 for similar companies like Annaly Capital Management, which has a P/E of 19.50, and Equity LifeStyle Properties, which is at 33.50. Additionally, CubeSmart's EV to EBITDA ratio stands at 14.26, compared to the peer average of 13.37, further supporting the undervaluation thesis.
Despite recent challenges reflected in its stock performance, where it has underperformed the S&P 500 across multiple periods, including a 1Y return of -24.46% compared to the S&P 500's 17.14%, the company's strong dividend yield of 350.43% and a solid ROCE of 16.97% suggest that it may be a compelling investment opportunity at its current price of 40.79.