Is EastGroup Properties, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for EastGroup Properties, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued, with a P/E ratio of 39, a Price to Book Value of 2.69, and an EV to EBITDA ratio of 19.51, all of which are higher than many of its peers. For instance, Annaly Capital Management, Inc. has a P/E of 19.50 and Omega Healthcare Investors, Inc. has an EV to EBITDA of 11.83, both suggesting that EastGroup is trading at a premium compared to these attractive alternatives.
In terms of performance, EastGroup Properties has underperformed relative to the S&P 500 over multiple periods, with a 1-year return of 1.90% compared to the S&P's 19.89%, and a 5-year return of 31.15% versus the S&P's 109.18%. This underperformance reinforces the notion that the stock may be overvalued in the current market environment.