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

As of 31 October 2025, the valuation grade for Mid-America Apartment Communities, Inc. moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company appears to be overvalued, with a P/E ratio of 32, significantly higher than its peer Alexandria Real Estate Equities, Inc. which has a P/E of 44.49. Additionally, the EV to EBITDA ratio stands at 14.95, while the industry average is lower at 14.58, further supporting the overvaluation assessment. The PEG ratio of 15.27 also suggests that the growth expectations are not justified by the current price.
In comparison to its peers, Mid-America Apartment Communities, Inc. has a higher valuation despite showing lower returns; for instance, its YTD return of -16.48% starkly contrasts with the S&P 500's return of 16.30% over the same period. This underperformance, alongside the high valuation ratios, reinforces the conclusion that the stock is overvalued in the current market context.