Is Equity LifeStyle Properties, Inc. overvalued or undervalued?

As of 24 January 2025, the valuation grade for Equity LifeStyle Properties, Inc. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company is currently considered overvalued based on its high P/E ratio of 34, which is notably above the industry average, as well as an EV to EBITDA ratio of 17.15 and a PEG ratio of 3.73. These metrics suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Equity LifeStyle Properties, Inc. has a higher P/E ratio than Essex Property Trust, Inc. at 28.13 and Mid-America Apartment Communities, Inc. at 31.98, both of which are categorized as expensive. Additionally, the company's dividend yield of 214.84% stands out, but this figure may not be sustainable given the overall valuation context. The stock has underperformed relative to the S&P 500 over the past year, which reinforces the notion that it is overvalued at its current price of 64.03.