Is Centerspace overvalued or undervalued?

As of 29 April 2024, Centerspace's valuation grade has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current metrics, with a Price to Book Value of 1.73 and an EV to EBITDA ratio of 8.48, which are concerning in the context of its negative earnings and low return on equity of -1.15%.
When compared to peers, Centerspace's P/E ratio is notably negative at -147.36, while Paramount Group, Inc. has a P/E of -23.26, and UMH Properties, Inc. shows a more favorable P/E of 49.76, highlighting the challenges Centerspace faces in generating profits. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -5.02% compared to the index's 2.44%. Overall, these factors suggest that Centerspace is overvalued in its current state.