Is American Homes 4 Rent overvalued or undervalued?

As of 11 September 2025, the valuation grade for American Homes 4 Rent has moved from attractive to very attractive, indicating a stronger investment appeal. The company appears undervalued based on its key ratios, including a P/E ratio of 29, an EV to EBITDA of 14.82, and a PEG ratio of 1.21. In comparison to peers, Alexandria Real Estate Equities, Inc. has a significantly higher P/E of 44.49, suggesting that American Homes 4 Rent may offer a more favorable valuation.
Despite its attractive valuation, American Homes 4 Rent has underperformed against the S&P 500, with a year-to-date return of -10.82% compared to the index's 12.22%. This underperformance, alongside a 1-year return of -15.86% versus the S&P 500's 17.14%, highlights the potential for recovery as the market recognizes the company's value.