Is Lument Finance Trust, Inc. overvalued or undervalued?

As of 7 August 2019, Lument Finance Trust, Inc. moved from a risky to a very attractive valuation grade. The company appears undervalued based on its financial metrics, with a P/E ratio of 9, a Price to Book Value of 0.58, and an EV to EBIT of 0.71. In comparison to peers, Lument Finance Trust's P/E is significantly lower than Industrial Logistics Properties Trust, which has a P/E of -4.68, and City Office REIT, Inc. with a P/E of -28.93, indicating a more favorable valuation.
Despite the attractive valuation, Lument Finance Trust has underperformed relative to the S&P 500, with a year-to-date return of -14.34% compared to the index's 12.22%. This trend continues over longer periods, with a 5-year return of -19.64% against the S&P 500's 96.61%, suggesting that while the stock may be undervalued, it has struggled to deliver returns in the market.