Is Lument Finance Trust, Inc. overvalued or undervalued?

As of 7 August 2019, Lument Finance Trust, Inc. has moved from a grade of risky to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued, with a P/E ratio of 9, a Price to Book Value of 0.58, and an impressive ROCE of 58.09%. These ratios suggest that the stock is trading at a discount compared to its earnings and assets.
In comparison to its peers, Lument Finance Trust has a more favorable valuation profile than Industrial Logistics Properties Trust, which has a P/E of -3.19, and City Office REIT, Inc., which has a P/E of -21.32. Additionally, Seven Hills Realty Trust, another peer, has a P/E of 10.34, further supporting the notion that Lument Finance Trust is undervalued. Despite recent underperformance against the S&P 500, the company's strong fundamentals and attractive valuation metrics present a compelling investment opportunity.