Is Income Opportunity Realty Investors, Inc. overvalued or undervalued?

As of 15 November 2019, the valuation grade for Income Opportunity Realty Investors, Inc. moved from very attractive to does not qualify. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 17, while the Price to Book Value is notably low at 0.61, indicating a potential disconnect between market price and intrinsic value. Additionally, the ROE is 3.63%, which is relatively low compared to industry standards.
In comparison to peers, Income Opportunity Realty Investors, Inc. has a P/E ratio of 16.73, while Ellington Credit Co. shows a much riskier P/E of -40.60, and ACRES Commercial Realty Corp. presents a very attractive P/E of 5.55. The EV to EBITDA ratio for Income Opportunity is significantly negative at -74.76, which raises concerns about profitability and operational efficiency. While the stock has outperformed the S&P 500 over the past year with a return of 13.85% compared to 10.26%, the overall valuation metrics suggest that the company is not positioned favorably in the current market environment.