Is SL Green Realty Corp. overvalued or undervalued?

As of 16 April 2025, the valuation grade for SL Green Realty Corp. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios highlight this concern, with a P/E ratio of 428, a PEG ratio of 3.72, and an EV to EBITDA ratio of 8.26. These figures suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to peers, SL Green Realty Corp. stands out with its high P/E ratio, especially when contrasted with Macerich Co., which has a P/E of -31.32, and Broadstone Net Lease, Inc., which is valued as very attractive with a P/E of 20.15. Additionally, the company has underperformed the S&P 500 on a year-to-date basis, with a return of -6.86% compared to the index's 2.44%. Overall, the combination of high valuation ratios and relative performance suggests that SL Green Realty Corp. is overvalued in the current market.