Is ACRES Commercial Realty Corp. overvalued or undervalued?

As of 1 May 2024, the valuation grade for ACRES Commercial Realty Corp. has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently undervalued, with a P/E ratio of 6, significantly lower than its peers, such as AG Mortgage Investment Trust, Inc. with a P/E of 4.27 and Modiv Industrial, Inc. with a much higher P/E of 52.88. Additionally, ACRES has a price-to-book value of 0.31 and an EV to EBITDA ratio of 0.58, both suggesting that the stock is trading at a discount compared to its intrinsic value.
In comparison to its peers, ACRES Commercial Realty Corp. stands out with a PEG ratio of 3.20, which, while higher than AG Mortgage Investment Trust's 0.26, reflects its growth potential in the context of its low valuation metrics. The company has also demonstrated strong performance with a return on capital employed (ROCE) of 32.18% and a return on equity (ROE) of 5.48%. Despite a recent decline in stock price compared to the S&P 500, ACRES has shown a robust one-year return of 34.24%, reinforcing its attractiveness as an investment opportunity.