Is Macerich Co. overvalued or undervalued?

As of 27 February 2025, the valuation grade for Macerich Co. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.59, an EV to EBIT of 21.11, and an EV to EBITDA of 7.74. In comparison to peers, Macerich Co. has a notably negative P/E ratio of -9.80, while Broadstone Net Lease, Inc. shows a more attractive EV to EBITDA of 9.17, suggesting that Macerich is not performing as favorably within its industry.
Despite a strong dividend yield of 344.81%, the company's negative ROE of -4.99% raises concerns about its profitability. Additionally, while Macerich has outperformed the S&P 500 over the last three and five years, with returns of 95.48% and 136.98% respectively, it has underperformed in the short term, with a year-to-date return of -10.89% compared to the S&P 500's 12.22%. This mixed performance further supports the view that Macerich Co. is currently overvalued.