Is Chatham Lodging Trust overvalued or undervalued?

As of 31 October 2025, Chatham Lodging Trust's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears undervalued based on its current metrics, with a P/E ratio of 23, a price-to-book value of 0.46, and an EV to EBITDA ratio of 3.52. In comparison, TPG RE Finance Trust has a P/E of 11.75, and Gladstone Commercial Corp. has a P/E of 20.11, both of which suggest that Chatham is trading at a lower valuation relative to its peers.
Despite the attractive valuation, Chatham Lodging Trust has underperformed against the S&P 500, with year-to-date returns of -28.49% compared to the index's 16.30%. This stark contrast in performance highlights the potential for recovery in the stock, reinforcing the notion that it is undervalued in the current market context.