Is EastGroup Properties, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for EastGroup Properties, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its key ratios, including a P/E ratio of 39, a Price to Book Value of 2.69, and an EV to EBITDA of 19.51. In comparison, peers such as Annaly Capital Management, Inc. have a P/E of 19.50 and Omega Healthcare Investors, Inc. with a P/E of 26.03, both suggesting that EastGroup is trading at a premium relative to its industry counterparts.
Moreover, while EastGroup's recent stock performance shows a 1-year return of -11.12% compared to the S&P 500's 17.14%, this underperformance reinforces the notion of overvaluation. The combination of high valuation ratios and weaker stock returns relative to the benchmark indicates that investors may be paying too much for EastGroup Properties, Inc. at this time.