Is Pebblebrook Hotel Trust overvalued or undervalued?

As of 26 February 2025, Pebblebrook Hotel Trust has moved from an attractive to a risky valuation grade. The company is currently considered overvalued, primarily due to its negative P/E ratio and poor return metrics. Key ratios include a Price to Book Value of 0.43, an EV to EBITDA of 3.03, and a Dividend Yield of 31.80%.
In comparison to its peers, Pebblebrook's valuation stands out unfavorably; for instance, CareTrust REIT, Inc. has a P/E of 29.30 and an EV to EBITDA of 18.40, while Douglas Emmett, Inc. boasts a P/E of 56.73 and an EV to EBITDA of 4.58. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -29.52% compared to the S&P's 2.44%, reinforcing the notion of overvaluation.