Is Lamar Advertising Co. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Lamar Advertising Co. has moved from very expensive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued, supported by a P/E ratio of 30, an EV to EBITDA ratio of 12.52, and a robust ROCE of 53.08%. In comparison, peers such as Annaly Capital Management, Inc. have a P/E of 19.50, and Omega Healthcare Investors, Inc. shows an EV to EBITDA of 11.83, highlighting Lamar's relative attractiveness in the market.
Despite recent stock performance lagging behind the S&P 500, with a 1-year return of -4.30% compared to the index's 17.14%, the long-term outlook remains positive, as evidenced by a 5-year return of 83.11%. This suggests that while short-term fluctuations may be present, the company's strong fundamentals and attractive valuation ratios position it favorably for future growth.