Is Hannon Armstrong Sustainable Infrastructure Capital, Inc. overvalued or undervalued?

As of 10 December 2024, the valuation grade for Hannon Armstrong Sustainable Infrastructure Capital, Inc. has moved from attractive to very attractive. The company is currently considered undervalued, with a P/E ratio of 23, an EV to EBITDA of 12.52, and a Price to Book Value of 1.28. In comparison to peers, Highwoods Properties, Inc. has a P/E of 17.10, while National Health Investors, Inc. stands at 22.15, indicating that Hannon Armstrong is trading at a premium relative to some of its peers.
Despite its attractive valuation, Hannon Armstrong has underperformed against the S&P 500 over various periods, including a 1-year return of -15.77% compared to the index's 10.26%. This underperformance may contribute to the perception of undervaluation, as the market has not fully recognized its potential despite strong fundamentals, including a remarkable dividend yield of 436.40% and a ROCE of 10.32%.