Is Essex Property Trust, Inc. overvalued or undervalued?

As of 13 May 2025, the valuation grade for Essex Property Trust, Inc. has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The P/E ratio stands at 28, while the industry average is not specified, but peer comparisons show that companies like Iron Mountain, Inc. have a P/E of 108.22, and Ventas, Inc. has a significantly higher P/E of 338.55, indicating that Essex is relatively more attractive in this context.
Additionally, Essex's EV to EBITDA ratio is 15.05, which is lower than Ventas's 43.69, but higher than Sun Communities, Inc.'s fair valuation of 13.55. The PEG ratio of 1.00 suggests that the stock is fairly priced relative to its growth prospects. Despite recent stock performance showing a 1-week return of 0.23% compared to a slight decline in the S&P 500, the overall valuation metrics indicate that Essex Property Trust, Inc. is overvalued in the current market landscape.