Is National Storage Affiliates Trust overvalued or undervalued?

As of 26 February 2025, the valuation grade for National Storage Affiliates Trust moved from fair to very attractive, indicating a significant improvement in its perceived value. Despite this positive change, the company appears to be overvalued based on its current metrics. The P/E ratio stands at 69, which is considerably higher than peers like Essential Properties Realty Trust at 25.37 and Kilroy Realty Corp. at 23.34. Additionally, the Price to Book Value is 4.36, and the EV to EBITDA ratio is 9.34, both suggesting that the stock may be priced too high relative to its earnings and assets.
In terms of performance, National Storage Affiliates Trust has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -19.23% compared to the S&P 500's 12.22%. This trend continues over one year and three years, where the stock has returned -36.74% and -34.46%, respectively, while the S&P 500 has gained 17.14% and 70.41%. Overall, while the valuation grade suggests potential, the high valuation ratios and poor stock performance indicate that National Storage Affiliates Trust is currently overvalued.