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 more favorable assessment of its stock. The company appears undervalued based on its current metrics, with a P/E ratio of 29, a Price to Book Value of 1.90, and an EV to EBITDA of 14.82. In comparison to its peer, Alexandria Real Estate Equities, which has a P/E ratio of 44.49, American Homes 4 Rent's valuation looks more appealing.
Despite the attractive valuation, the company's recent performance has lagged behind the S&P 500, with a year-to-date return of -15.55% compared to the index's 16.30%. This underperformance over multiple periods, including a one-year return of -10.33% versus 19.89% for the S&P 500, suggests that while the stock may be undervalued, market sentiment has not yet reflected this potential.