Is Getty Realty Corp. overvalued or undervalued?

As of 16 January 2025, the valuation grade for Getty Realty Corp. has moved from expensive to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, especially when considering its P/E ratio of 22, which is lower than peers like OUTFRONT Media, Inc. with a P/E of 24.95 and Retail Opportunity Investments Corp. at 38.84. Additionally, Getty's EV to EBITDA ratio stands at 9.56, which is competitive compared to InvenTrust Properties Corp. at 11.72, further supporting the undervaluation thesis.
Despite the attractive valuation metrics, Getty Realty Corp. has underperformed against the S&P 500, with a one-year return of -14.15% compared to the index's 17.14%. This underperformance highlights the potential for recovery as the market recognizes the company's value. With a robust dividend yield of 577.14% and a ROCE of 11.46%, Getty Realty Corp. presents a compelling investment opportunity in the current market landscape.