Is BRT Apartments Corp. overvalued or undervalued?

As of 9 August 2024, BRT Apartments Corp. has moved from a very attractive to a risky valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 1.52, an EV to EBITDA of 7.43, and a ROCE of 6.43%. In comparison, peers such as Orchid Island Capital, Inc. and Gladstone Commercial Corp. have significantly higher P/E ratios of 21.15 and 21.36, respectively, indicating a more favorable valuation outlook.
The company's recent performance shows a troubling trend, with a YTD return of -10.48%, contrasting sharply with the S&P 500's gain of 2.44% in the same period. Given the negative ROE of -4.56% and the high EV to EBIT ratio of 25.04, BRT Apartments Corp. appears to be struggling financially, reinforcing its classification as overvalued in the current market context.