Is Tejon Ranch Co. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Tejon Ranch Co. has moved from attractive to risky, indicating a shift in its perceived investment quality. The company appears to be overvalued, with a P/E ratio of 202, significantly higher than the industry average, and an EV to EBITDA ratio of -174.06, which suggests severe operational challenges. Additionally, the PEG ratio stands at 0.76, indicating that the stock may not be priced appropriately relative to its growth expectations.
In comparison to its peers, FRP Holdings, Inc. is rated fair with a P/E of 91.74 and an EV to EBITDA of 16.37, highlighting a stark contrast in valuation metrics. The negative returns for Tejon Ranch Co. over the past year (-9.85%) and three years (2.18%) compared to the S&P 500's returns of 17.14% and 70.41%, respectively, further reinforce the notion that the stock is not performing well relative to broader market benchmarks.