Is American Homes 4 Rent overvalued or undervalued?

As of 31 October 2025, the valuation grade for American Homes 4 Rent moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 29, a Price to Book Value of 1.90, and an EV to EBITDA of 14.82. In comparison, its peer Alexandria Real Estate Equities, Inc. has a much higher P/E of 44.49, highlighting American Homes 4 Rent's relative attractiveness in the market.
Despite the positive valuation indicators, American Homes 4 Rent has underperformed against the S&P 500, with a year-to-date return of -15.55% compared to the index's 16.30%. This performance, coupled with a PEG ratio of 1.21, suggests that the stock may be undervalued relative to its growth prospects, making it an appealing option for investors looking for value in the realty sector.