Is Welltower, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Welltower, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued, with a P/E ratio of 90.34, significantly higher than the industry average, suggesting that investors are paying a premium for its earnings. Additionally, the EV to EBITDA ratio stands at 31.46, further emphasizing the elevated valuation compared to peers.
In terms of peer comparison, Welltower, Inc. is notably more expensive than its competitors, such as the average industry P/E, which typically reflects a more reasonable valuation. Despite this, Welltower has demonstrated strong performance with a year-to-date return of 32.14%, outpacing the S&P 500's return of 12.22% during the same period. However, the long-term returns indicate that while the stock has performed well over the years, its current valuation metrics suggest it may be time for investors to exercise caution.