Is Modiv Industrial, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Modiv Industrial, Inc. has moved from very attractive to risky, indicating a shift in investor sentiment. The company appears overvalued, as evidenced by its high P/E ratio of 51 compared to peers like Empire State Realty OP LP with a P/E of 45.84 and Braemar Hotels & Resorts, Inc. at 33.48. Additionally, the EV to EBITDA ratio stands at 3.83, which is relatively favorable, yet the PEG ratio of 1.82 suggests that growth expectations may not justify the current price.
In terms of performance, Modiv Industrial has underperformed against the S&P 500, with a 1-year return of -7.59% compared to the S&P 500's 17.14%, and a 3-year return of -4.04% against 70.41% for the index. This underperformance reinforces the notion that the stock may be overvalued in the current market context.