Is AG Mortgage Investment Trust, Inc. overvalued or undervalued?

As of 7 August 2023, the valuation grade for AG Mortgage Investment Trust, Inc. moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued based on its current metrics, with a P/E ratio of 4, a price-to-book value of 0.40, and an impressive EV to EBIT ratio of 0.23. These ratios suggest that the stock is trading at a substantial discount compared to its earnings potential.
In comparison to its peers, AG Mortgage Investment Trust stands out with a much lower P/E ratio than Industrial Logistics Properties Trust, which is at -3.19, and City Office REIT, Inc. at -21.32. Additionally, the company’s PEG ratio of 0.27 further emphasizes its undervaluation relative to peers like Modiv Industrial, Inc., which has a PEG of 1.87. Notably, AG Mortgage Investment Trust has outperformed the S&P 500 in the past month, with a return of 12.83% compared to the index's 3.83%, reinforcing the case for its undervalued status.