Is Sabra Health Care REIT, Inc. overvalued or undervalued?

As of 27 February 2024, the valuation grade for Sabra Health Care REIT, Inc. has moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, supported by a P/E ratio of 27, a PEG ratio of 0.18, and an EV to EBITDA ratio of 9.20, which are favorable compared to its peers. For instance, Vornado Realty Trust has a P/E of 9.71, and Rithm Capital Corp. has an EV to EBITDA of 1.61, highlighting Sabra's relative valuation strength.
Despite the recent stock performance showing a 1-week decline of 1.41% compared to the S&P 500's gain of 1.05%, the longer-term outlook remains promising with a year-to-date return of 8.89% against the S&P 500's 12.22%. This suggests that while the stock has faced short-term challenges, its overall valuation metrics indicate it is positioned well for future growth.