Altarea’s share price has inched higher in recent weeks, yet the real story sits in the earnings power behind that move. The headline is simple: the stock now trades on a rich P/E of 66.3x while the balance sheet still carries clear stress.

Funds From Operations, the key profitability lens for a property group, stands at €144.9 million over the last twelve months and the company has moved into profit. At the same time, the dividend yield of 7.86% is not well covered and debt coverage by operating cash flow remains tight. That clash between optimism and strain is what the market is now pricing, or possibly mispricing.

Is Altarea’s 66.3x P/E simply reflecting the recent shift back to profit, or does it indicate a clear overvaluation…