Based on the provided data and current valuation metrics, VICI Properties is not overvalued. The REIT's current PE ratio of 12.34 and EV/EBITDA of 14.33 are reasonable for the gaming REIT sector. The stock is trading at 1.34x book value, which is moderate for a high-quality REIT portfolio.
The stock has underperformed the broader market, declining 2.5% while the S&P 500 gained 20.9% over the past year. This underperformance has created an attractive valuation entry point. The company maintains a healthy 5.04% dividend yield, supported by consistent FFO growth expectations of 5.1% year-over-year.
Wall Street analysts remain overwhelmingly bullish, with 17 "Strong Buy" ratings out of 22 analysts. The mean price target of $35.46 suggests a 19% upside potential from current levels. Recent analyst actions include Barclays maintaining a Buy rating with a $35 target and Truist Securities keeping a Strong Buy rating despite lowering their target to $35.
The company's portfolio quality, geographic diversification, and superior same-store growth potential justify current valuation levels. Additionally, VICI's strategic shift towards financing transactions in response to the interest rate environment demonstrates management's adaptability.