Is Brandywine Realty Trust overvalued or undervalued?

As of 24 October 2023, the valuation grade for Brandywine Realty Trust has moved from very attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly given its significant negative returns over multiple periods. Key valuation ratios include a Price to Book Value of 0.78, an EV to EBIT of 8.45, and an EV to EBITDA of 2.81, which suggest that the company's valuation metrics are not favorable compared to its peers.
In comparison to its peers, Saul Centers, Inc. has a P/E ratio of 18.43 and an EV to EBITDA of 4.52, highlighting a stark contrast in valuation. Additionally, BrightSpire Capital, Inc. is also categorized as risky but has a more favorable EV to EBITDA of 2.40. Notably, Brandywine's stock has underperformed against the S&P 500, with a year-to-date return of -19.46% compared to the index's 12.22%, reinforcing the notion that the stock is currently overvalued.