Is Essential Properties Realty Trust, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Essential Properties Realty Trust, Inc. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued based on its current metrics, with a P/E ratio of 28, a Price to Book Value of 1.69, and an EV to EBITDA of 14.00. In comparison, Vornado Realty Trust has a P/E of 9.71 and an EV to EBITDA of 9.81, while Rithm Capital Corp. shows a P/E of 8.42 and an EV to EBITDA of 1.61, suggesting that Essential Properties is trading at a premium relative to its peers.
Despite the attractive valuation, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -4.48% compared to the index's 16.30%. This underperformance, alongside a 1-year return of -5.71% against the S&P 500's 19.89%, highlights potential market concerns despite the favorable valuation metrics.