Mid-America Apartment Communities shares fell by -1.2% during the day's aftermarket session, and are now trading at a price of $144.8. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Mid-America Apartment Communities (MAA) is a publicly traded real estate investment trust based in Memphis, Tennessee that invests in apartments in the Southeastern United States and the Southwestern United States.. The company belongs to the Real Estate sector, which has an average price to earnings (P/E) ratio of 24.81 and an average price to book (P/B) ratio of 2.24. In contrast, Mid-America Apartment Communities has a trailing 12 month P/E ratio of 27.48 and a P/B ratio of 3.172.
Mid-America Apartment Communities's PEG ratio is 10.19, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.