Is Farmland Partners, Inc. overvalued or undervalued?

As of 28 May 2025, the valuation grade for Farmland Partners, Inc. has moved from very attractive to attractive, indicating a shift in perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 9, a Price to Book Value of 1.14, and a PEG Ratio of 0.12, which suggest that the stock is trading at a lower valuation compared to its earnings growth potential.
In comparison to peers, Farmland Partners, Inc. has a P/E ratio of 8.63, which is significantly lower than Dynex Capital, Inc. at 18.29, indicating that Farmland may be undervalued relative to its earnings. Additionally, the EV to EBITDA ratio of 17.77 is higher than the industry average, suggesting that the market may not fully recognize its potential. Despite a recent underperformance against the S&P 500 over the past year, the long-term return of 71.60% over five years highlights the company's resilience and potential for growth.