Is Easterly Government Properties, Inc. overvalued or undervalued?

As of 9 May 2016, the valuation grade for Easterly Government Properties, Inc. moved from risky to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, particularly when considering its Price to Book Value of 0.75 and an EV to EBITDA ratio of 5.59, which are favorable compared to its peers. The P/E ratio stands at 58, which is relatively high, but when compared to The GEO Group, Inc. with a P/E of 32.63, it suggests that Easterly may still offer value relative to its industry.
In terms of peer comparison, Easterly Government Properties, Inc. has a higher valuation compared to Uniti Group, Inc. with a P/E of 50.89 and Elme Communities, which is categorized as risky. Despite its attractive valuation grade, the company has underperformed the S&P 500, with a year-to-date return of -17.01% compared to the S&P 500's 12.22%, and a 5-year return of -58.10% against the S&P 500's 96.61%. This performance highlights the potential disconnect between the company's valuation and its market performance.