Is Global Net Lease, Inc. overvalued or undervalued?

As of 10 May 2023, the valuation grade for Global Net Lease, Inc. has moved from very attractive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current financial metrics, particularly given its negative P/E ratio and a Price to Book Value of 0.90. Additionally, the EV to EBITDA ratio stands at 2.83, which is relatively low compared to its peers, suggesting that the market may not be pricing in the risks adequately.
In comparison to its peers, Global Net Lease, Inc. has a notably lower EV to EBITDA ratio than The GEO Group, Inc. at 7.1014 and NetSTREIT Corp. at 11.9945, both of which are classified as risky. Furthermore, the company's return performance has been underwhelming, with a 1-year return of -8.13% compared to the S&P 500's 17.14%, highlighting its struggles in a broader market context. Overall, the combination of these factors leads to the conclusion that Global Net Lease, Inc. is overvalued.