Is LXP Industrial Trust overvalued or undervalued?

As of 13 February 2025, the valuation grade for LXP Industrial Trust has moved from expensive to very attractive, indicating a significant shift in its perceived value. The company appears undervalued, particularly when considering its P/E ratio of 40, which is notably lower than its peers like Cousins Properties, Inc. with a P/E of 82.34 and Independence Realty Trust, Inc. at 147.10. Additionally, LXP's PEG ratio of 0.40 suggests strong growth potential relative to its price, further supporting the undervaluation thesis.
In comparison to its peers, LXP Industrial Trust's EV to EBITDA ratio stands at 9.70, while EPR Properties, another very attractive peer, has a lower EV to EBITDA of 8.25. The company also boasts a dividend yield of 6.05%, which is appealing in the current market environment. Despite recent stock performance showing a 14.66% return year-to-date compared to the S&P 500's 12.22%, the longer-term returns reveal a lag, with a 1-year return of -8.28% against the S&P's 17.14%. This discrepancy highlights the potential for recovery and growth in LXP's valuation moving forward.