Is Apollo Commercial Real Estate Finance, Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for Apollo Commercial Real Estate Finance, Inc. has moved from very attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly when considering its P/E ratio of 174, which is significantly higher than its peers, such as OUTFRONT Media, Inc. with a P/E of 24.95 and InvenTrust Properties Corp. at 19.73. Additionally, the EV to EBITDA ratio stands at 2.50, while the industry average is considerably lower, further supporting the overvaluation thesis.
With a Price to Book Value of 0.74 and a PEG Ratio of 1.61, the metrics suggest that the stock is not aligned with its intrinsic value, especially when compared to its peers. The company's recent performance shows a YTD return of 23.21%, outperforming the S&P 500's 12.22%, but this is overshadowed by a 3-year return of -4.56% compared to the S&P 500's 70.41%. Overall, these factors indicate that Apollo Commercial Real Estate Finance, Inc. is currently overvalued in the market.