Simon Property Group, Inc. (SPG) Stock Valuation — PE Analysis
REIT - Retail · NYSE
Current Price
$219.04
PE Ratio (TTM)
15.2x
Intrinsic Value
$193.47
-13.2% margin of safety
COMPETITIVE MOAT
↑Prime Retail Locations
SPG owns and operates a portfolio of high-quality, dominant shopping malls and premium outlets. These prime locations attract top retailers and a consistent flow of shoppers, creating a significant competitive advantage.
↑Scale and Diversification
The company's vast scale across numerous properties and geographic regions provides operational efficiencies and reduces reliance on any single market. This diversification insulates SPG from localized economic downturns.
↑Strong Tenant Relationships
SPG cultivates deep relationships with a diverse tenant base, including major anchor stores and popular brands. This loyalty ensures high occupancy rates and a stable revenue stream, even in challenging retail environments.
INVESTMENT RISKS
↓Evolving Consumer Behavior
The shift towards e-commerce and changing consumer preferences for experiences over traditional retail pose a persistent threat. SPG must continuously adapt its offerings to remain relevant and attract foot traffic.
↓Interest Rate Sensitivity
As a real estate investment trust, SPG's profitability is sensitive to interest rate fluctuations. Rising rates can increase borrowing costs and potentially depress property valuations.
↓Economic Downturns
Recessions or significant economic slowdowns can negatively impact consumer spending, leading to reduced retail sales and increased tenant defaults. This directly affects SPG's rental income and property values.
Base case
SPG base case PE valuation
A base case PE valuation for SPG estimates a fair value of about $193.47 per share, against a current price of $219.04. The model assumes 0.5% annual earnings growth, a 15x target PE multiple, and a 10% discount rate.
Intrinsic Value
$193.47
Margin of safety
-13.2%
Expected annual return
-2.5%
Base case assumptions: 0.5% annual earnings growth, 15x 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 SPG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Simon Property Group, Inc. respond.
Open PE Calculator for SPGCompany Overview
Simon Property Group (NYSE: SPG) is a prominent S&P 100 real estate investment trust that specializes in owning and developing a portfolio of world-class shopping, dining, entertainment, and mixed-use destinations. These significant properties, strategically located across North America, Europe, and Asia, serve as vital community hubs, attracting millions of visitors daily and contributing billions in annual revenue.
Financial Metrics — SPG PE Stock Valuation Data
PE Ratio (TTM)
15.2x
PEG Ratio
0.12
Earnings Yield
6.59%
ROE (TTM)
125.9%
Revenue/Share (TTM)
$20.52
Dividend Yield
4.02%
Debt/Equity
5.96x
Frequently Asked Questions
What is the PE ratio of SPG?
The trailing twelve-month PE ratio of SPG reflects how much investors pay per dollar of Simon Property Group, Inc.'s earnings. This metric is most useful when compared to REIT - Retail peers and the company's own historical range.
Is SPG overvalued based on PE ratio?
SPG's PE of 15.2x combined with a PEG ratio of 0.12 provides a growth-adjusted perspective. A PEG below 1.0 suggests SPG may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical REIT - Retail, a DCF analysis may be more appropriate.
How do I value SPG stock using PE ratio?
To value Simon Property Group, Inc. using PE: (1) Compare the current PE (15.2x) against the REIT - Retail median to assess relative pricing, (2) check the PEG ratio (0.12) 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 SPG?
SPG's PEG ratio is 0.12, calculated by dividing the PE ratio (15.2x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SPG stock valuation?
PE ratio gives a quick relative read — how SPG is priced versus REIT - Retail peers. DCF provides an absolute value based on projected free cash flows. For SPG, with a strong ROE of 125.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 SPG 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 SPG 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.