Is Welltower, Inc. overvalued or undervalued?

As of 28 July 2025, the valuation grade for Welltower, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting it is not a bargain. The company appears to be overvalued based on its high P/E ratio of 83, EV to EBITDA of 30.35, and a PEG ratio of 0.76, which, while below 1, still reflects a premium valuation compared to its peers.
In comparison to its peers, Prologis, Inc. has a more reasonable P/E of 31.30 and EV to EBITDA of 17.36, while Simon Property Group, Inc. is valued attractively with a P/E of 33.41. Despite Welltower's strong YTD return of 32.14% compared to the S&P 500's 12.22%, the high valuation ratios suggest that investors may be overestimating its future growth potential.