Is Performance Shipping, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Performance Shipping, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, particularly when considering its low Price to Book Value of 0.07, an EV to EBIT ratio of -1.06, and an EV to EBITDA ratio of -0.80. In comparison, Imperial Petroleum, Inc. has a P/E ratio of 3.5052, while Dynagas LNG Partners LP shows a P/E of 2.5351, highlighting the relative attractiveness of Performance Shipping within its peer group.
Despite the positive valuation indicators, Performance Shipping has underperformed against the S&P 500, with a year-to-date return of -2.15% compared to the S&P 500's 12.22%. This trend continues over longer periods, with a 3-year return of -52.04% versus the S&P 500's 70.41%, suggesting that while the stock may be undervalued, it faces significant challenges in the market.