Is InnSuites Hospitality Trust overvalued or undervalued?

As of 18 June 2024, the valuation grade for InnSuites Hospitality Trust has moved from expensive to risky, indicating a deterioration in its investment appeal. The company is currently overvalued, reflected in its Price to Book Value of 5.89 and an EV to Sales ratio of 3.52, both of which suggest that the stock is trading at a premium compared to its underlying assets and revenue generation capabilities. Additionally, the negative ROCE of -16.30% and ROE of -30.21% further highlight the company's struggles in generating returns for shareholders.
When compared to peers, InnSuites Hospitality Trust's P/E ratio is not applicable due to its loss-making status, while Strawberry Fields REIT, Inc. presents a more attractive valuation with a P/E of 24.91. Mobile Infrastructure Corp. also shows a risky valuation with a P/E of -14.49, indicating similar challenges. Furthermore, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -13.00% compared to the index's 12.22%, reinforcing the notion that it is currently overvalued.