Is EastGroup Properties, Inc. overvalued or undervalued?

As of 24 April 2025, EastGroup Properties, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 39, an EV to EBITDA of 19.51, and a Price to Book Value of 2.69, which are significantly higher than its peers. For instance, Kimco Realty Corp. has a P/E of 25.49, while Healthpeak Properties, Inc. boasts a lower EV to EBITDA of 7.37, indicating that EastGroup is trading at a premium compared to these competitors.
Despite a recent stock return of 8.11% year-to-date, which outperformed the S&P 500's 2.44%, the valuation metrics suggest that investors may be paying too much for EastGroup Properties, Inc. relative to its earnings and growth potential. The company's ROE stands at 6.83% and ROCE at 7.91%, further supporting the conclusion that it is overvalued in the current market environment.