Is Kilroy Realty Corp. overvalued or undervalued?

As of 15 April 2025, the valuation grade for Kilroy Realty Corp. has moved from expensive to very attractive, indicating a significant shift in its perceived value. Based on the current metrics, the company appears undervalued, especially when considering its P/E ratio of 42, which is notably higher than peers such as Vornado Realty Trust at 9.71 and Rithm Capital Corp. at 8.42. Additionally, Kilroy's EV to EBITDA stands at 11.86, while its peer average is lower, suggesting a more favorable valuation compared to its competitors.
The company also boasts a remarkable dividend yield of 230.58%, which is an outlier in the industry and enhances its attractiveness to investors. However, its ROCE of 6.30% and ROE of 3.71% indicate that while the stock is currently undervalued, the company's profitability metrics may warrant further scrutiny. In terms of recent performance, Kilroy Realty Corp. has outperformed the S&P 500 over the past week and month, with returns of 3.47% and 16.43%, respectively, although it has lagged over longer periods, such as the 3-year and 5-year returns.