Is Cherry Hill Mortgage Investment Corp. overvalued or undervalued?

Sep 20 2025 05:59 PM IST
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As of May 6, 2025, Cherry Hill Mortgage Investment Corp. has been downgraded to a risky valuation grade, indicating it is overvalued compared to peers, with concerning metrics such as a Price to Book Value of 0.44 and an EV to EBIT of 0.97.
As of 6 May 2025, the valuation grade for Cherry Hill Mortgage Investment Corp. has moved from very attractive to risky, indicating a significant downgrade in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.44, an EV to EBIT of 0.97, and an EV to Sales ratio of 0.44. In comparison to peers, City Office REIT, Inc. has a more concerning P/E ratio of -28.93, while AG Mortgage Investment Trust, Inc. stands out with a very attractive P/E of 4.76.

The company's return metrics are not available, but the shift in valuation grade suggests that Cherry Hill Mortgage Investment Corp. may not be performing well relative to the S&P 500. Overall, the combination of its low valuation ratios and the peer comparison indicates that the stock is overvalued in its current state.
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