Is Angel Oak Mortgage REIT, Inc. overvalued or undervalued?

As of 5 March 2024, the valuation grade for Angel Oak Mortgage REIT, Inc. has moved from risky to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 6, a price to book value of 0.86, and an impressive ROCE of 57.22%. In comparison, Orchid Island Capital, Inc. has a P/E ratio of 21.15, while Postal Realty Trust, Inc. shows a much higher P/E of 67.11, highlighting the relative undervaluation of Angel Oak.
Despite recent stock performance lagging behind the S&P 500, with a 1-year return of -25.47% compared to the index's 10.26%, the underlying financial metrics suggest that the company presents a compelling investment opportunity. The EV to EBITDA ratio stands at 1.45, further supporting the notion that Angel Oak Mortgage REIT, Inc. is undervalued relative to its peers.