Is Empire State Realty Trust, Inc. overvalued or undervalued?

As of 16 April 2025, the valuation grade for Empire State Realty Trust, Inc. has moved from expensive to fair. The company is currently fairly valued, with a P/E ratio of 26, a Price to Book Value of 1.37, and an EV to EBITDA of 3.45. In comparison to its peers, Acadia Realty Trust has a significantly higher P/E ratio of 95.18, while Retail Opportunity Investments Corp. shows a P/E of 38.84, indicating that Empire State Realty Trust is positioned more attractively within its industry.
Notably, the company's ROCE stands at 19.31%, which reflects a strong return on capital employed, while its ROE is at 5.35%. Despite recent underperformance compared to the S&P 500, particularly year-to-date with a return of -17.93% versus the S&P's 2.44%, the overall valuation metrics suggest that Empire State Realty Trust is currently a fair investment opportunity in the market.