Is Apple Hospitality REIT, Inc. overvalued or undervalued?

As of 18 April 2023, the valuation grade for Apple Hospitality REIT, Inc. has moved from attractive to very attractive. The company appears undervalued, supported by a P/E ratio of 14, a price-to-book value of 0.87, and an EV to EBITDA ratio of 5.96. In comparison to peers, Vornado Realty Trust has a P/E of 9.71, while Rithm Capital Corp. shows a significantly lower EV to EBITDA of 1.61, indicating that Apple Hospitality REIT, Inc. is positioned favorably within its industry.
Despite its attractive valuation, Apple Hospitality REIT, Inc. has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -17.52% compared to the S&P 500's 12.22%. This trend continues over one year and three years, where the company has returned -12.45% and -19.67%, respectively, while the S&P 500 has shown positive gains. However, over a five-year period, the company has managed a return of 23.51%, which is noteworthy compared to the S&P 500's 96.61%.