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. Based on the current metrics, the company appears to be undervalued. Key ratios include a P/E ratio of 28, an EV to EBITDA of 14.00, and a Price to Book Value of 1.69. In comparison, peers such as Vornado Realty Trust have 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, indicating that Essential Properties is trading at a premium relative to its peers.
Despite the attractive valuation grade, 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 S&P 500's 16.30%. This underperformance, combined with the attractive valuation metrics, suggests that the stock may present a buying opportunity for investors looking for value in the realty sector.