Is Chatham Lodging Trust overvalued or undervalued?

As of 31 October 2025, the valuation grade for Chatham Lodging Trust has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears undervalued, supported by a P/E ratio of 23, a price-to-book value of 0.46, and an EV to EBITDA ratio of 3.52, all of which suggest that the stock may be trading below its intrinsic value compared to its peers.
In comparison to its peers, Chatham Lodging Trust's P/E ratio is higher than TPG RE Finance Trust, which has a P/E of 11.75, and lower than Summit Hotel Properties, which stands at 44.62. The PEG ratio of 0.17 further highlights its potential for growth relative to its price, especially when compared to Gladstone Commercial Corp.'s PEG of 0.40. Despite the attractive valuation, Chatham has underperformed against the S&P 500, with a year-to-date return of -28.49% compared to the index's 16.30%, reflecting a significant divergence in performance.