Is National Health Investors, Inc. overvalued or undervalued?

As of 27 August 2025, the valuation grade for National Health Investors, Inc. has moved from attractive to very attractive, indicating a strong positive shift in its valuation outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 23, which is lower than the peer average of approximately 24.77, and an EV to EBITDA ratio of 12.07, also competitive against peers like Broadstone Net Lease, Inc. at 9.17. Additionally, the PEG ratio of 4.40 suggests that while growth expectations may be high, the current price does not fully reflect the potential growth of the company.
In comparison to its peers, National Health Investors, Inc. stands out with a solid ROCE of 14.97% and a dividend yield of 461.57%, which is significantly attractive in the current market. Notably, while the company has underperformed the S&P 500 over the past year with a return of -6.95% compared to 17.14%, it has shown resilience with a 3-year return of 26.85%, although it lags behind the S&P 500's 70.41% return during the same period. This combination of valuation metrics and peer comparisons suggests that National Health Investors, Inc. is positioned well for future growth, reinforcing its undervalued status.