Is Saul Centers, Inc. overvalued or undervalued?

As of 16 January 2025, the valuation grade for Saul Centers, Inc. has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 18, an EV to EBITDA ratio of 4.77, and a remarkable dividend yield of 679.30%. In comparison, its peer, which has a P/E of approximately 18.43 and an EV to EBITDA of 4.52, suggests that Saul Centers is competitively priced within its industry.
Despite the positive valuation indicators, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -16.60% compared to the S&P 500's 12.22%. This trend continues over longer periods, with a 1-year return of -20.02% against the S&P 500's 17.14%. Overall, while the valuation metrics suggest that Saul Centers, Inc. is very attractive, the recent stock performance raises concerns about its market perception.