Is Vornado Realty Trust overvalued or undervalued?

As of 31 October 2025, the valuation grade for Vornado Realty Trust has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 51, which is significantly higher than its peers such as Rithm Capital Corp. with a P/E of 8.42 and AGNC Investment Corp. at 28.50. Additionally, Vornado's PEG ratio of 0.62 suggests that it may be undervalued relative to its growth prospects, especially when compared to the industry average.
In terms of valuation metrics, Vornado's EV to EBITDA stands at 10.46, which is lower than the industry average, further supporting the undervaluation thesis. The dividend yield of 167.86% is exceptionally high, indicating strong returns for investors. However, the company has underperformed in the short term, with a year-to-date return of -9.75% compared to the S&P 500's 16.30%, and a one-year return of -8.38% against the S&P 500's 19.89%. This performance may reflect market sentiment rather than the underlying value of the company.