Is Braemar Hotels & Resorts, Inc. overvalued or undervalued?

As of 8 November 2023, Braemar Hotels & Resorts, Inc. has moved from an expensive to a risky valuation grade. The company appears to be overvalued based on its high P/E ratio of 162, significantly outpacing its peers, such as Industrial Logistics Properties Trust with a P/E of -4.68 and Transcontinental Realty Investors, Inc. at 61.06. Additionally, Braemar's Price to Book Value stands at 0.24, and its EV to EBITDA is notably low at 0.20, indicating a potential disconnect between market price and underlying value.
In comparison to its peers, Braemar's valuation metrics suggest it is not aligned with the broader market trends, especially when considering its recent performance against the S&P 500, where it has underperformed over the 1-year and 3-year periods, returning -2.88% and -41.28%, respectively, compared to 17.14% and 70.41% for the index. This further reinforces the notion that Braemar Hotels & Resorts, Inc. is currently overvalued in the market.