Is Macerich Co. overvalued or undervalued?

As of 27 February 2025, the valuation grade for Macerich Co. has moved from expensive to risky, indicating a significant shift in perception regarding its financial health. The company is currently considered overvalued, primarily due to its negative return on equity (ROE) of -4.99% and a price-to-book value of 1.59. Additionally, the enterprise value to EBITDA ratio stands at 7.74, which is relatively high compared to peers.
In comparison to its peers, Macerich Co. has a notably lower valuation with a P/E ratio of -31.32, while Tanger, Inc. is classified as very expensive with a P/E of 35.60, and Broadstone Net Lease, Inc. is very attractive with a P/E of 20.15. The high dividend yield of 344.81% may seem appealing, but it is overshadowed by the company's ongoing losses and low ROCE of 7.97%. Recent stock performance shows that while Macerich Co. has outperformed the S&P 500 over the past year with a return of 9.34%, its year-to-date performance of -19.48% suggests underlying challenges that contribute to its current overvaluation status.