Is NNN REIT, Inc. overvalued or undervalued?

As of 10 June 2025, the valuation grade for NNN REIT, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, particularly when considering its P/E ratio of 19, which is competitive against peers like Annaly Capital Management, Inc. with a P/E of 19.50 and Omega Healthcare Investors, Inc. at 26.03. Additionally, NNN REIT's EV to EBITDA ratio of 9.75 is favorable compared to the industry average, suggesting it may be trading at a discount relative to its earnings potential.
In terms of returns, NNN REIT has faced challenges, with a 1-year return of -12.72% compared to the S&P 500's 17.14%, and a 3-year return of -4.02% against the benchmark's 70.41%. Despite these recent struggles, the company's strong dividend yield of 514.38% and ROCE of 12.62% highlight its potential for future growth and income generation, reinforcing the case for its undervaluation.