Is Chatham Lodging Trust overvalued or undervalued?

As of 6 May 2025, the valuation grade for Chatham Lodging Trust has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 23, a Price to Book Value of 0.46, and an EV to EBITDA of 3.52, which suggest that the stock is trading at a discount relative to its earnings and assets.
In comparison to its peers, Chatham Lodging Trust's P/E ratio of 22.77 is higher than Dynex Capital, Inc. at 18.29 but lower than Universal Health Realty Income Trust at 30.47, indicating a competitive position within the sector. Additionally, the PEG ratio of 0.17 highlights strong growth potential relative to its valuation. While Chatham has underperformed against the S&P 500 over the past year with a return of -15.01% compared to the index's 10.26%, its attractive valuation metrics suggest a potential for recovery.