Is Federal Agricultural Mortgage Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Federal Agricultural Mortgage Corp. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, supported by a P/E ratio of 10, an EV to EBITDA of 1.18, and a Price to Book Value of 1.34. In comparison, peers such as H&E Equipment Services, Inc. have a much higher P/E of 34.29, while Nelnet, Inc. shows a P/E of 11.39, further emphasizing the relative attractiveness of Federal Agricultural Mortgage Corp.
Despite recent underperformance with a year-to-date return of -4.62% compared to the S&P 500's 12.22%, the long-term outlook remains positive, as evidenced by a 3-year return of 78.87%, outpacing the benchmark's 70.41%. This suggests that while short-term fluctuations may be concerning, the company's fundamentals and valuation metrics indicate a promising investment opportunity.