Is Mid-America Apartment Communities, Inc. overvalued or undervalued?

As of 13 May 2025, the valuation grade for Mid-America Apartment Communities, Inc. has moved from very expensive to expensive, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 32, an EV to EBITDA of 14.95, and a Price to Book Value of 3.01, which are significantly higher than the industry averages, suggesting that the stock may not justify its price based on earnings and asset values.
In comparison to peers, Mid-America's P/E ratio of 31.98 is notably lower than Iron Mountain, Inc. at 108.22, but higher than Alexandria Real Estate Equities, Inc. at 31.89, which is rated very attractive. The EV to EBITDA ratio also reflects a premium compared to Invitation Homes, Inc. at 13.99. Despite a recent stock return of 6.53% over the past year, it has underperformed against the S&P 500's 10.26% return, further supporting the view that the stock is overvalued in the current market context.