Is NexPoint Diversified Real Estate Trust overvalued or undervalued?

As of 14 March 2024, the valuation grade for NexPoint Diversified Real Estate Trust has moved from does not qualify to risky. The company is currently assessed as overvalued. Key ratios include a Price to Book Value of 0.23, an EV to EBIT of -4.49, and an EV to EBITDA of -10.57, which indicate significant financial distress and inefficiency.
In comparison with peers, NexPoint's EV to EBITDA ratio of -10.57 is notably worse than Diversified Healthcare Trust, which has an EV to EBITDA of 2.3723, and Orchid Island Capital, Inc., which is very attractive with a P/E ratio of 21.1470. The company's recent performance has also lagged behind the S&P 500, with a year-to-date return of -36.23% compared to the index's 2.44%, reinforcing the notion of overvaluation amidst poor financial metrics.