Is Ashford Hospitality Trust, Inc. overvalued or undervalued?

As of 5 October 2023, Ashford Hospitality Trust, Inc. has moved from a valuation grade of very attractive to risky. The company is currently considered overvalued given its negative financial metrics, including a Price to Book Value of -0.14 and an EV to EBITDA ratio of -1.05. Additionally, the Return on Capital Employed (ROCE) stands at -6.96%, indicating significant inefficiencies in generating returns from its capital.
In comparison to its peers, Ashford Hospitality Trust's P/E ratio is not applicable due to its loss-making status, while AG Mortgage Investment Trust, Inc. shows a P/E of 4.27, reflecting a more favorable valuation. Other peers like Modiv Industrial, Inc. exhibit a robust P/E of 52.88, further underscoring Ashford's relative overvaluation. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -17.80% compared to the index's 2.44%, reinforcing the notion that it is currently overvalued.