EastGroup Properties, Inc. (EGP) Stock Valuation — PE Analysis
REIT - Industrial · NYSE
Current Price
$205.29
PE Ratio (TTM)
37.5x
Intrinsic Value
$199.3
-3.0% margin of safety
COMPETITIVE MOAT
↑Prime Industrial Locations
EGP focuses on infill industrial properties in high-growth Sun Belt markets. This strategic concentration provides access to dense populations and robust economic activity, driving consistent demand.
↑Long-Term Tenant Relationships
The company cultivates strong relationships with its tenants, often leading to lease renewals and a stable, recurring revenue stream. This fosters loyalty and reduces tenant turnover.
↑Operational Efficiency
EGP's management demonstrates a disciplined approach to property development and management. This focus on efficiency contributes to strong operational performance and profitability.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a REIT, EGP is susceptible to rising interest rates, which can increase borrowing costs and potentially impact property valuations. This could affect future growth and profitability.
↓Market Competition
The industrial REIT sector is competitive, with other players vying for prime locations and tenants. EGP faces ongoing pressure to maintain its market position and attract new business.
↓Economic Downturn Impact
A significant economic slowdown could reduce demand for industrial space and impact tenant ability to pay rent. This could lead to increased vacancies and lower rental income.
Base case
EGP base case PE valuation
A base case PE valuation for EGP estimates a fair value of about $199.3 per share, against a current price of $205.29. The model assumes 6.2% annual earnings growth, a 38x target PE multiple, and a 10% discount rate.
Intrinsic Value
$199.3
Margin of safety
-3.0%
Expected annual return
-0.6%
Base case assumptions: 6.2% annual earnings growth, 38x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the EGP PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for EastGroup Properties, Inc. respond.
Open PE Calculator for EGPCompany Overview
EastGroup Properties, Inc. (NYSE: EGP), a self-administered equity real estate investment trust and an S&P MidCap 400 company, specializes in the development, acquisition, and management of industrial properties. The company concentrates its efforts within major Sunbelt markets across the United States, with a particular focus on Florida, Texas, Arizona, California, and North Carolina. Its central aim is to enhance shareholder value by serving as a leading provider of adaptable, efficient, and high-quality business distribution facilities for location-sensitive clients, generally seeking spaces between 15,000 and 70,000 square feet. EastGroup's growth strategy prioritizes ownership of prime distribution centers, strategically positioned close to key transportation networks in submarkets where supply is limited. The firm's current portfolio encompasses approximately 45.8 million square feet, including properties under development, value-add acquisitions in lease-up, and those currently under construction.
Financial Metrics — EGP PE Stock Valuation Data
PE Ratio (TTM)
37.5x
PEG Ratio
1.87
Earnings Yield
2.67%
ROE (TTM)
8.4%
Revenue/Share (TTM)
$13.79
Dividend Yield
2.95%
Debt/Equity
0.47x
Frequently Asked Questions
What is the PE ratio of EGP?
The trailing twelve-month PE ratio of EGP reflects how much investors pay per dollar of EastGroup Properties, Inc.'s earnings. This metric is most useful when compared to REIT - Industrial peers and the company's own historical range.
Is EGP overvalued based on PE ratio?
EGP's PE of 37.5x combined with a PEG ratio of 1.87 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Industrial, a DCF analysis may be more appropriate.
How do I value EGP stock using PE ratio?
To value EastGroup Properties, Inc. using PE: (1) Compare the current PE (37.5x) against the REIT - Industrial median to assess relative pricing, (2) check the PEG ratio (1.87) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of EGP?
EGP's PEG ratio is 1.87, calculated by dividing the PE ratio (37.5x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EGP stock valuation?
PE ratio gives a quick relative read — how EGP is priced versus REIT - Industrial peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See EGP DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Real Estate valuationsP/E and DCF value EGP with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.