Is Granite Point Mortgage Trust, Inc. overvalued or undervalued?

As of 8 November 2022, the valuation grade for Granite Point Mortgage Trust, Inc. moved from very attractive to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued, particularly given its P/E ratio is not applicable due to losses, while its Price to Book Value stands at 0.21, and its EV to EBITDA is at 0.19. These ratios suggest that the market may be pricing the stock too high relative to its earnings potential and asset value.
In comparison to peers, One Liberty Properties, Inc. has a P/E ratio of 17.92, and Transcontinental Realty Investors, Inc. boasts an EV to EBITDA of 43.83, highlighting the relative weakness of Granite Point's valuation metrics. The company's recent stock performance shows a 1-year return of 4.03%, which significantly lags behind the S&P 500's 17.14% return, further reinforcing the notion that the stock is overvalued in the current market environment.