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 market position. 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 peers, American Homes 4 Rent has a more attractive P/E ratio of 26.53 against Mid-America Apartment Communities, which is considered expensive at 30.50, and Alexandria Real Estate Equities, which is deemed risky with a P/E of 44.49.
Despite recent underperformance, with a year-to-date return of -14.00% compared to the S&P 500's 16.30%, the valuation metrics suggest that American Homes 4 Rent presents a compelling investment opportunity relative to its peers.