Is Independence Realty Trust, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Independence Realty Trust, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered overvalued based on its high P/E ratio of 138 compared to its peers, such as Essential Properties Realty Trust, which has a P/E of 28.21, and Phillips Edison & Co., which stands at 67.30. Additionally, the EV to EBITDA ratio of 34.35 further supports this assessment, as it is significantly higher than the industry average.
In terms of performance metrics, Independence Realty Trust, Inc. has a Price to Book Value of 1.26 and a PEG Ratio of 0.28, which suggests that while it may have growth potential, its current valuation does not align with its earnings growth prospects. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -10.48% compared to the index's 2.44%. This underperformance, combined with its elevated valuation ratios, reinforces the conclusion that Independence Realty Trust, Inc. is overvalued in the current market environment.