Is ACRES Commercial Realty Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for ACRES Commercial Realty Corp. moved from expensive to attractive, indicating a shift towards a more favorable assessment. Based on the current metrics, the company appears undervalued. The P/E ratio stands at 6, significantly lower than the peer average of 7.22, while the EV to EBITDA ratio is also low at 0.58, suggesting that the company is trading at a discount compared to its peers.
In comparison to specific peers, AG Mortgage Investment Trust, Inc. has a P/E ratio of 4.76, and Lument Finance Trust, Inc. shows a P/E of 8.57, both of which highlight ACRES' relative valuation attractiveness. Additionally, the company has demonstrated strong performance with a year-to-date return of 31.27%, outperforming the S&P 500's return of 12.22% over the same period, reinforcing the notion that ACRES Commercial Realty Corp. is undervalued in the current market.