Is Blackstone Mortgage Trust, Inc. overvalued or undervalued?

As of 24 July 2024, the valuation grade for Blackstone Mortgage Trust, Inc. has moved from very attractive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued, particularly when compared to its peers. Key ratios reveal a Price to Book Value of 0.89, an EV to EBIT of 1.77, and a notably high Dividend Yield of 826.59%, which may reflect the company's struggles rather than strong financial health.
In comparison to its peers, Rithm Capital Corp. shows a P/E ratio of 8.29 and an EV to EBITDA of 1.38, while Apartment Income REIT Corp. has a P/E of 8.87 and an EV to EBITDA of 10.99, both indicating a healthier valuation profile. The stark contrast in valuation metrics suggests that Blackstone Mortgage Trust, Inc. is not only underperforming relative to its industry but also carries a higher risk profile. Despite a recent positive return of 12.23% year-to-date compared to the S&P 500's 2.44%, the overall outlook remains cautious given the company's financial instability.