Is Clipper Realty, Inc. overvalued or undervalued?

As of 8 March 2018, the valuation grade for Clipper Realty, Inc. moved from does not qualify to risky, indicating a shift towards a more cautious outlook. The company appears to be undervalued based on its low P/E ratio of 4, an EV to EBIT of 0.57, and an exceptionally low PEG ratio of 0.01, suggesting potential for growth relative to its price. In comparison, AG Mortgage Investment Trust, Inc. has a P/E of 4.76, while Empire State Realty OP LP is considered expensive with a P/E of 45.84, highlighting the relative attractiveness of Clipper Realty's valuation metrics.
Despite its undervaluation, Clipper Realty has struggled in recent performance, with a 1-year return of -22.39% compared to the S&P 500's 17.14%, and a staggering -47.45% over three years against the S&P 500's 70.41%. This performance underscores the risks associated with the investment, even as its valuation ratios suggest it may be a bargain in the current market.