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 downgrade in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.89, an EV to EBITDA of 1.71, and a notably high Dividend Yield of 826.59%. In comparison to peers, Vornado Realty Trust has a P/E ratio of 9.71 and Rithm Capital Corp. has an EV to EBITDA of 1.61, both suggesting that Blackstone Mortgage Trust is lagging behind its competitors in terms of valuation.
Recent performance shows that Blackstone Mortgage Trust has underperformed against the S&P 500, with a 1-year return of -0.82% compared to the index's 17.14%. This trend is further emphasized by its 3-year and 5-year returns of -32.35% and -17.23%, respectively, highlighting ongoing challenges for the company. Overall, the combination of a risky valuation grade and poor relative performance suggests that Blackstone Mortgage Trust, Inc. is overvalued at this time.