Is Invitation Homes, Inc. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Invitation Homes, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 42, while the EV to EBITDA ratio is 13.85, and the Price to Book Value is 2.09. In comparison, peers such as AvalonBay Communities, Inc. have a P/E of 23.50 and Equity Residential has a P/E of 25.07, suggesting that Invitation Homes is priced higher than some of its fair-valued competitors.
Despite the fair valuation, Invitation Homes has underperformed against the S&P 500, with a year-to-date return of -7.66% compared to the index's 12.22%. This trend continues over longer periods, with a 1-year return of -17.68% versus the S&P 500's 17.14%. Overall, while the stock is currently fairly valued, its recent performance raises concerns about its growth potential relative to the broader market.