Is National Health Investors, Inc. overvalued or undervalued?

As of 30 May 2025, the valuation grade for National Health Investors, Inc. has moved from expensive to fair. Based on the analysis, the company appears to be fairly valued at this time. The P/E ratio stands at 23, which is slightly above the industry average P/E of approximately 22.15. Additionally, the EV to EBITDA ratio is 12.07, indicating a reasonable valuation compared to peers like Broadstone Net Lease, Inc. with an EV to EBITDA of 8.20 and SL Green Realty Corp. which is at a risky valuation with a P/E of 428.69.
The company also boasts a strong dividend yield of 461.57% and a ROCE of 14.97%, which are notable strengths. However, the PEG ratio of 4.40 suggests that growth expectations may be priced in at a high premium. While National Health Investors, Inc. has shown a stock return of 8.37% over the past year, it has underperformed compared to the S&P 500's return of 10.26% in the same period, reinforcing the notion that it is fairly valued relative to its growth prospects.