Is Prologis, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Prologis, Inc. moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company appears to be overvalued based on its current metrics. Key valuation ratios include a P/E ratio of 28, an EV to EBITDA of 17.07, and a Price to Book Value of 1.93. In comparison, Welltower, Inc. has a higher P/E of 88.35, while Simon Property Group, Inc. is more attractive with a P/E of 33.41.
Despite a year-to-date return of 17.31%, which outperformed the S&P 500's 16.30%, Prologis has underperformed over longer periods, with a 3-year return of 14.80% compared to the S&P 500's 76.66%. This suggests that while there may be short-term gains, the overall valuation does not justify the current price level.