Is Independence Realty Trust, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Independence Realty Trust, Inc. has moved from fair to attractive, indicating a more favorable outlook. The company appears to be undervalued, particularly given its PEG ratio of 0.28 and a P/E ratio of 138, which suggests that the stock may be priced lower relative to its growth potential. Additionally, the EV to EBITDA ratio stands at 12.27, which is relatively competitive within the industry context.
When compared to peers, Independence Realty Trust's P/E ratio of 147.10 is significantly higher than Vornado Realty Trust's 9.71 and Essential Properties Realty Trust's 25.37, highlighting a potential overvaluation relative to these competitors. Despite this, the company's high dividend yield of 248.33% and low ROE of 0.92% may attract income-focused investors. However, recent stock performance has lagged behind the S&P 500, with a year-to-date return of -14.01% compared to the index's 12.22%, suggesting that the market may not fully recognize the company's intrinsic value yet.