Is Simon Property Group, Inc. overvalued or undervalued?

As of 25 August 2025, the valuation grade for Simon Property Group, Inc. moved from very expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued based on its current metrics, with a P/E ratio of 31, a Price to Book Value of 24.52, and an EV to EBITDA of 14.30. In comparison, its peers such as Prologis, Inc. have a P/E of 31.30 and an EV to EBITDA of 17.36, while Realty Income Corp. shows a P/E of 39.28 and an EV to EBITDA of 10.72, suggesting that Simon Property Group is positioned favorably within its industry.
Despite recent underperformance against the S&P 500 over the past week and month, where it returned -2.07% and 4.36% respectively, the company's strong long-term performance is notable, with a 5-year return of 157.90% compared to the S&P 500's 96.61%. This long-term outperformance reinforces the attractiveness of Simon Property Group's current valuation.