Is UMH Properties, Inc. overvalued or undervalued?

As of 20 August 2025, the valuation grade for UMH Properties, Inc. moved from attractive to very attractive. The company appears to be undervalued, particularly when considering its PEG ratio of 0.27, which suggests strong growth potential relative to its price, and an EV to EBITDA ratio of 12.49, indicating a favorable valuation compared to earnings before interest, taxes, depreciation, and amortization. Additionally, the P/E ratio stands at 50, which is relatively high, but when viewed alongside its peers, such as Alexander's, Inc. with a P/E of 32.50 and Easterly Government Properties, Inc. at 62.84, it reflects a competitive positioning in the market.
Despite the attractive valuation metrics, UMH Properties has underperformed compared to the S&P 500, with a year-to-date return of -20.39% versus the S&P 500's 12.22%. This trend continues over longer periods, with a 3-year return of -17.24% compared to the S&P 500's 70.41%. Overall, while the valuation ratios suggest that UMH Properties, Inc. is undervalued, its recent stock performance indicates potential challenges ahead.