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 less favorable valuation outlook. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 71, which is significantly higher than peers such as The GEO Group, Inc. at 32.63 and Uniti Group, Inc. at 50.89. Additionally, the EV to EBITDA ratio stands at 9.81, which also suggests a premium compared to the industry.
In terms of performance, NetSTREIT Corp. has shown a year-to-date return of 29.40%, outperforming the S&P 500's 16.30% over the same period, but its longer-term returns are concerning, particularly a -1.77% return over three years compared to the S&P 500's impressive 76.66%. This discrepancy in longer-term performance reinforces the view that the stock may be overvalued relative to its potential for growth.