Valuation Premium Question

EastGroup Properties (EGP) traded at $205.29, near analysts’ average target, after a 7‑day share‑price return of 3.57% and a 1‑year total shareholder return of 24.29%. The firm’s narrative fair value of $214.89 places it 4.5 % undervalued, driven by strong demand for modern industrial/logistics assets in Sunbelt markets and e‑commerce growth. However, the current P/E ratio of 37.7x exceeds both the global Industrial REITs average and peer averages, raising questions about whether the premium price can be justified long‑term.