Is Prologis, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Prologis, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. Based on the current metrics, Prologis appears to be overvalued. The P/E ratio stands at 28, while the industry average is not provided, suggesting a potential premium over peers. Additionally, the EV to EBITDA ratio is 17.07, and the PEG ratio is 1.60, which further supports the notion of overvaluation compared to industry benchmarks.
In comparison to its peers, Prologis has a P/E ratio of 31.30, which is higher than Simon Property Group, Inc. at 33.41 and Realty Income Corp. at 39.28, both of which are considered very attractive. However, Prologis's valuation ratios suggest it is not as compelling as these peers. Notably, Prologis has underperformed against the S&P 500 over the 1-year and 3-year periods, with returns of 9.87% and 12.05%, respectively, compared to 19.89% and 76.66% for the index, reinforcing the view that it may be overvalued.