Is NetSTREIT Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for NetSTREIT Corp. has moved from very expensive to expensive, indicating a shift towards a more cautious outlook. The company appears to be overvalued based on its high P/E ratio of 71, which significantly exceeds the industry average, and an EV to EBITDA ratio of 9.81, suggesting that investors are paying a premium for its earnings potential. Additionally, the company's return on equity (ROE) stands at a low 1.43%, raising concerns about its profitability relative to its equity base.
In comparison to its peers, NetSTREIT Corp. has a P/E ratio that is higher than The GEO Group, Inc. at 32.63 and Uniti Group, Inc. at 50.89, both of which are also considered risky investments. The company's dividend yield of 422.95% is notable, but the low ROCE of 4.12% indicates inefficiencies in capital use. Over the past year, NetSTREIT Corp. has returned 20.13%, slightly outperforming the S&P 500's 19.89%, yet its long-term performance has lagged significantly behind the index over three and five years. Overall, the valuation metrics suggest that NetSTREIT Corp. is overvalued in the current market environment.