Is Terreno Realty Corp. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Terreno Realty Corp. moved from fair to very attractive. The company appears undervalued based on its current metrics, with a P/E ratio of 31, a Price to Book Value of 1.57, and an EV to EBITDA ratio of 23.08. In comparison to peers, Terreno Realty Corp. has a more favorable PEG ratio of 0.49 compared to AGNC Investment Corp. at 2.67 and Brixmor Property Group, Inc. at 2.17, indicating a better growth potential relative to its valuation.
Despite its attractive valuation, Terreno Realty Corp. has underperformed against the S&P 500 over various periods, particularly in the past year with a return of -14.25% compared to the S&P 500's 17.14%. However, its long-term performance shows a modest 5-year return of 7.42%, which is significantly lower than the S&P 500's 96.61%, reinforcing the notion that the stock may be undervalued in the current market context.