Is Apartment Investment & Management Co. overvalued or undervalued?

As of 7 August 2023, Apartment Investment & Management Co. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its significant negative financial metrics, including a Price to Book Value of 10.68 and an EV to EBITDA ratio of 19.61, which are concerning in the context of its loss-making status. The ROCE and ROE are alarmingly low at -80.06% and -97.49%, respectively, indicating severe operational inefficiencies.
In comparison with peers, Apartment Investment & Management Co.'s P/E ratio is notably negative at -11.05, while The GEO Group, Inc. has a P/E of 31.10, highlighting a stark contrast in valuation. Other peers such as Elme Communities and NetSTREIT Corp. also reflect risky valuations, with P/E ratios of -100.62 and 72.64, respectively. Despite a recent positive stock return of 10.77% over the past month, the overall performance against the S&P 500 shows a year-to-date decline of 4.95%, reinforcing the notion that the company is currently overvalued.