Is Gaming & Leisure Properties, Inc. overvalued or undervalued?

As of 24 October 2023, the valuation grade for Gaming & Leisure Properties, Inc. has moved from fair to very attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 16, an EV to EBITDA of 8.89, and a robust ROCE of 28.23%. In comparison, its peers such as Alexandria Real Estate Equities, Inc. have a significantly higher P/E of 44.49, while American Homes 4 Rent shows a P/E of 26.53, suggesting that Gaming & Leisure Properties, Inc. is trading at a more favorable valuation relative to its industry.
Despite the attractive valuation, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -2.06% compared to the index's 12.22%. This trend continues over longer periods, with a 5-year return of 26.66% against the S&P 500's 96.61%, highlighting the potential for value realization as the market adjusts to its attractive valuation metrics.