Is Paramount Group, Inc. overvalued or undervalued?

As of 15 February 2023, the valuation grade for Paramount Group, Inc. has moved from very attractive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly given its negative P/E ratio and a return on equity (ROE) of -2.11%. Key ratios include a price to book value of 0.50, an EV to EBITDA of 2.46, and a dividend yield of 49.24%, which, while high, may not be sustainable given the company's financial challenges.
In comparison to its peers, Paramount Group, Inc. has a P/E ratio of -23.26, which starkly contrasts with The GEO Group, Inc. at a P/E of 31.10, indicating that Paramount is not only losing money but is also priced unfavorably against more profitable companies. Other peers like Elme Communities and NetSTREIT Corp. also reflect risky valuations, yet their metrics suggest a more stable financial footing. Notably, while Paramount has outperformed the S&P 500 over the past year with a return of 43.21% compared to 10.26%, this may not be indicative of long-term value given the current financial instability.