Is Bluerock Homes Trust, Inc. overvalued or undervalued?

As of 22 March 2023, the valuation grade for Bluerock Homes Trust, Inc. moved from does not qualify to risky, indicating a shift in the company's perceived risk profile. The company is currently deemed overvalued based on its high P/E ratio of 38, which significantly exceeds the industry average, and an EV to EBITDA ratio of 98.97, suggesting that investors are paying a premium for earnings that may not materialize. Additionally, the PEG ratio stands at 0.28, which typically indicates undervaluation, but in this context, it is overshadowed by the other concerning metrics.
In comparison to its peers, Bluerock's P/E ratio is notably higher than that of Ellington Credit Co., which has a negative P/E of -40.60, and Mobile Infrastructure Corp. with a P/E of -21.21. Meanwhile, ACRES Commercial Realty Corp. presents a very attractive valuation with a P/E of 5.55, highlighting the disparity in valuation within the sector. The company's recent stock performance has been mixed, with a 1-month return of 23.2%, outperforming the S&P 500's 3.83%, but a 1-year return of -28.81% suggests significant challenges ahead.