Is SL Green Realty Corp. overvalued or undervalued?

As of 16 April 2025, the valuation grade for SL Green Realty Corp. has moved from fair to risky, indicating a shift towards a more concerning outlook. The company appears overvalued based on its high P/E ratio of 428, a PEG ratio of 3.72, and an EV to EBITDA of 8.26, which are significantly higher than many peers. For instance, Macerich Co. has a P/E ratio of -9.80, while Broadstone Net Lease, Inc. shows a more attractive EV to EBITDA of 9.17.
In terms of recent performance, SL Green Realty Corp. has underperformed compared to the S&P 500, with a 1-year return of -12.51% versus the index's 17.14%. This underperformance, combined with the high valuation ratios, reinforces the conclusion that the stock is overvalued relative to its peers and the broader market.