Is Diversified Healthcare Trust overvalued or undervalued?

As of 1 March 2023, the valuation grade for Diversified Healthcare Trust moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly given its significant negative metrics. Key ratios include a Price to Book Value of 0.42, an EV to EBITDA of 2.14, and an EV to Sales of 0.34, all suggesting that the company is not performing well relative to its valuation.
In comparison to its peers, Diversified Healthcare Trust has a P/E ratio of NA due to being loss-making, while one peer shows an EV to EBITDA of 3.7352, indicating a more favorable valuation. Additionally, the company's recent stock performance has been mixed; it has outperformed the S&P 500 with a year-to-date return of 95.22% compared to the index's 12.22%, but it has also seen a decline of 0.88% over the past week while the S&P 500 gained 1.05%.