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 investment appeal. The company appears to be undervalued, supported by a P/E ratio of 6, a price-to-book value of 0.86, and an EV to EBIT ratio of 1.45, all of which suggest that the stock is trading at a discount compared to its earnings and asset values.
In comparison to its peers, Angel Oak Mortgage REIT, Inc. has a notably lower P/E ratio than CTO Realty Growth, Inc. at -61.47 and Transcontinental Realty Investors, Inc. at 61.06, which highlights its relative value. Furthermore, the company's return performance has lagged behind the S&P 500, with a 1-year return of -6.8% compared to the index's 17.14%, reinforcing the notion that the stock may be undervalued in the current market environment.