Is American Realty Investors, Inc. overvalued or undervalued?

As of 7 November 2024, the valuation grade for American Realty Investors, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. Based on the available metrics, the company appears to be overvalued, particularly given its negative P/E ratio and low Price to Book Value of 0.41. Additionally, the EV to EBIT ratio stands at -23.62, further highlighting the company's financial struggles.
In comparison to its peers, American Realty Investors, Inc. has a significantly lower EV to EBITDA ratio of 23.18, while FRP Holdings, Inc. shows a fair valuation with an EV to EBITDA of 16.37. Other risky peers like Tejon Ranch Co. and Maui Land & Pineapple Co., Inc. exhibit even more concerning ratios, with EV to EBITDA figures of -169.64 and -57.74, respectively. Despite a strong 5-year return of 102.42%, the company's recent performance has lagged behind the S&P 500, especially over the past year, where it returned -3.35% compared to the index's 17.14%.