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. This indicates a shift towards a more cautious outlook, suggesting that the company is currently overvalued. Key valuation ratios include a Price to Book Value of 0.50, an EV to EBIT of 6.58, and an EV to EBITDA of 2.46, which highlight the company's financial challenges compared to its peers.
In comparison with peers, The GEO Group, Inc. has a P/E ratio of 32.63, while American Assets Trust, Inc. boasts a much more favorable P/E of 17.05, emphasizing Paramount's relative underperformance. Additionally, the company's recent stock performance has been mixed, with a year-to-date return of 32.79% compared to the S&P 500's 12.22%, but it has significantly lagged over longer periods, such as a 3-year return of -6.02% versus the S&P 500's 70.41%.