Is Franklin Street Properties Corp. overvalued or undervalued?

As of 7 November 2023, Franklin Street Properties Corp. has moved from an attractive to a risky valuation grade. The company is currently overvalued given its financial metrics, particularly with a Price to Book Value of 0.29 and an EV to EBITDA ratio of 4.28, which indicates a high valuation relative to its earnings potential. Additionally, the company has a negative ROE of -10.37% and a ROCE of -1.30%, highlighting ongoing operational challenges.
In comparison to its peers, Franklin Street Properties Corp. shows significant underperformance, with its P/E ratio at -2.6641, while Postal Realty Trust, Inc. is very attractive with a P/E of 67.1120, and Transcontinental Realty Investors, Inc. has a P/E of 43.8120. The company's recent stock performance has also lagged behind the S&P 500, with a year-to-date return of -4.92% compared to the index's 2.44%. Overall, these factors suggest that Franklin Street Properties Corp. is overvalued in the current market context.