Is American Assets Trust, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for American Assets Trust, Inc. moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, particularly when considering its P/E ratio of 15, a PEG ratio of 0.31, and an EV to EBITDA ratio of 3.67, which are all favorable compared to industry peers. For instance, LTC Properties, Inc. has a P/E of 18.85, while Xenia Hotels & Resorts, Inc. shows a higher P/E of 21.12, suggesting that American Assets Trust, Inc. is trading at a discount relative to these competitors.
Despite its attractive valuation metrics, the stock has underperformed against the S&P 500, with a year-to-date return of -19.99% compared to the index's 12.22%. This trend continues over longer periods, with a 3-year return of -23.35% versus the S&P 500's 70.41%. These figures reinforce the notion that American Assets Trust, Inc. is undervalued, as the market has not yet recognized its potential despite strong valuation ratios.