Is Vornado Realty Trust overvalued or undervalued?

As of 4 August 2025, Vornado Realty Trust's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, particularly in light of its P/E ratio of 51, which is notably higher than peers like Rithm Capital Corp. with a P/E of 8.42 and Terreno Realty Corp. at 24.04. Additionally, Vornado's PEG ratio of 0.62 suggests that it may be undervalued relative to its growth prospects, while its EV to EBITDA ratio of 10.46 is competitive against the industry.
In comparison to its peers, Vornado Realty Trust's valuation metrics stand out, especially when considering the very attractive ratings of companies like AGNC Investment Corp. and Rithm Capital Corp. Furthermore, the company's recent stock performance shows a 1-year return of 7.82%, which lags behind the S&P 500's 17.14% return over the same period, reinforcing the potential for upward movement in its valuation.