Is AMREP Corp. overvalued or undervalued?

As of 21 January 2025, AMREP Corp. has moved from fair to attractive in its valuation grade, indicating a positive shift in its perceived value. The company is currently undervalued, with a P/E ratio of 9, significantly lower than the industry average, suggesting that the market may not fully recognize its potential. Additionally, the EV to EBITDA ratio stands at 5.61, and the PEG ratio is notably low at 0.28, further supporting the undervaluation thesis.
In comparison to its peers, AMREP Corp. shows a more favorable valuation, with Five Point Holdings LLC at a P/E of 6.72 and an EV to EBITDA of 0.62, which are both lower than AMREP's metrics. This positions AMREP favorably within its sector, especially considering its ROCE of 14.95% and ROE of 10.29%. Notably, AMREP has outperformed the S&P 500 over the past year with a return of 14.80% compared to the index's 10.26%, reinforcing the attractiveness of its current valuation.