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 to be undervalued, supported by a P/E ratio of 29, a Price to Book Value of 1.90, and an EV to EBITDA ratio of 14.82. In comparison to its peer Alexandria Real Estate Equities, which has a significantly higher P/E ratio of 44.49, American Homes 4 Rent presents a more attractive investment opportunity.
Additionally, the PEG ratio of 1.21 suggests that the stock is reasonably priced relative to its growth prospects. Although specific return data is not available, the overall valuation narrative suggests that American Homes 4 Rent is positioned well against broader market benchmarks, reinforcing its attractiveness as an investment.