Is Simon Property Group, Inc. overvalued or undervalued?

As of 1 November 2024, the valuation grade for Simon Property Group, Inc. has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios reveal a P/E ratio of 31, a Price to Book Value of 24.52, and an EV to EBITDA of 14.30, all of which are significantly higher than industry averages.
When compared to peers, Simon Property Group's P/E ratio of 31 is lower than American Tower Corp.'s 34.12 but higher than Prologis, Inc.'s 26.72, suggesting a mixed competitive position. The company also has a notably high ROCE of 251.73% and ROE of 80.25%, which may indicate strong operational efficiency, yet these figures do not justify the current valuation. Recent stock performance shows that while Simon Property Group has outperformed the S&P 500 over the past year, its year-to-date return of -7.62% suggests a disconnect between stock performance and valuation metrics.