Is Ventas, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Ventas, Inc. has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. However, the company remains overvalued, with a P/E ratio of 343, significantly higher than its peers, such as Iron Mountain, Inc. with a P/E of 108.22 and Invitation Homes, Inc. at 42.08. Other notable ratios include a Price to Book Value of 7.51 and an EV to EBITDA of 44.30, both of which further highlight the premium at which Ventas is trading compared to its industry.
In comparison to its peers, Ventas's PEG ratio stands at 8.26, which is considerably higher than Iron Mountain's 0.00, suggesting that Ventas is not only overvalued but also lacks growth potential relative to its price. Despite a strong one-year stock return of 26.00% compared to the S&P 500's 10.26%, the underlying valuation metrics indicate that investors may be paying too much for Ventas relative to its earnings and growth prospects.