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 investment potential. The company appears to be undervalued, particularly when considering its low Price to Book Value of 0.46 and a PEG Ratio of 0.17, which suggests strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 3.52, indicating that the company is trading at a low multiple compared to its earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Chatham Lodging Trust's P/E Ratio of 23 is higher than TPG RE Finance Trust, Inc. at 11.75, but lower than Summit Hotel Properties, Inc. at 44.62. The PEG Ratio of 0.17 is also more favorable than that of Gladstone Commercial Corp., which has a PEG of 0.40. Despite the attractive valuation metrics, Chatham has underperformed against the S&P 500, with a year-to-date return of -28.49% compared to the index's 16.30%, highlighting the potential for recovery as the market recognizes its value.