Assessing Phillips Edison (PECO) Valuation As Mixed Recent Returns Meet Premium P/E Multiple

Phillips Edison (PECO) has caught investor attention after recent trading left the stock around $35.20, with returns mixed over the past year and a modest gain in the past 3 months. See our latest analysis for Phillips Edison. At the current share price of $35.20, Phillips Edison’s recent 4.36% 90 day share price return contrasts with a slightly negative year to date share price return of 0.20%, while the 3 year total shareholder return of 18.68% suggests momentum has built more over the longer term than in the past year. If this kind of steady, income oriented story appeals to you, it could be a good moment to broaden your watchlist with fast growing stocks with high insider ownership. With shares around $35.20, a value score of 2, an estimated 23% intrinsic discount and analyst targets about 13% higher, you have to ask: is there a genuine opportunity here, or is the market already pricing in future growth? Most Popular Narrative: 10.2% Undervalued With Phillips Edison last closing at $35.20 versus a narrative fair value of $39.18, the current pricing sits below what this view implies. Active portfolio recycling and disciplined acquisitions of high-growth, grocery-anchored properties, often below replacement cost and at 6%+ cap rates with 9%+ target IRRs, enhance asset quality and earnings potential, while cash acquisitions and low leverage (5.4x EBITDAre, 5.7 years weighted avg. maturity, 95% fixed-rate debt) allow for opportunistic external growth without the need for dilutive equity issuance, supporting long-term FFO/EPS expansion. Read the complete narrative. Want to see what sits behind that growth roadmap? The narrative leans on measured revenue gains, firmer margins and a richer future earnings multiple. Curious how those elements combine into an 8.1% discounted cash flow view? Result: Fair Value of $39.18 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to weigh the risk that faster e commerce adoption or pressure on major grocery anchors could hit occupancy, rent growth, and asset values. Find out about the key risks to this Phillips Edison narrative. Another View: Earnings Multiple Tells A Different Story While the narrative fair value of $39.18 suggests Phillips Edison is 10.2% undervalued, the current P/E of 54x sends a very different signal. That is well above the US Retail REITs industry at 27.4x and also above the 32.9x fair ratio the market could move towards. If earnings do not keep pace with those richer expectations, that gap between 54x today and the 32.9x fair ratio could turn into valuation risk rather than opportunity. This raises a key question: is this a case of a solid income vehicle priced for perfection, or a premium that buyers are still prepared to pay? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:PECO P/E Ratio as at Jan 2026 Build Your Own Phillips Edison Narrative If you see the data differently or prefer to test your own assumptions, you can build a personalised Phillips Edison story in minutes with Do it your way. A great starting point for your Phillips Edison research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? If you are serious about building a stronger portfolio, do not stop at one stock. The right mix of ideas can influence your long term results. Spot potential early movers by scanning these 3545 penny stocks with strong financials that already show stronger balance sheets and fundamentals than many expect at this size. Position yourself in fast changing tech by checking out these 26 AI penny stocks focused on artificial intelligence themes that a lot of investors are only starting to notice. Focus on price and cash generation by reviewing these 884 undervalued stocks based on cash flows that the model flags as trading below their implied cash flow value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.