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

As of 23 July 2025, the valuation grade for Empire State Realty Trust, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its valuation metrics, 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 peers, Acadia Realty Trust has a significantly higher P/E of 57.50, while LTC Properties, Inc. is more attractively valued with a P/E of 18.85.
The stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -25.68% compared to the S&P 500's 12.22%, and a one-year return of -30.96% versus 17.14%. This performance reinforces the notion that Empire State Realty Trust, Inc. is currently overvalued in the market.