Is PermRock Royalty Trust overvalued or undervalued?

As of 15 May 2019, the valuation grade for PermRock Royalty Trust has moved from does not qualify to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued based on its financial metrics, with a P/E ratio of 9, a price to book value of 0.68, and an EV to EBITDA of 8.75. These ratios suggest that the stock is trading at a discount compared to its earnings and assets.
In comparison to its peers, PermRock Royalty Trust's P/E ratio of 8.99 is notably lower than that of Sabine Royalty Trust at 12.41 and Permian Basin Royalty Trust at 24.94, highlighting its undervaluation relative to the industry. Additionally, the company's return on capital employed (ROCE) and return on equity (ROE) are both at 7.72%, which, while modest, indicate a stable performance. Notably, the stock has outperformed the S&P 500 over the past year, with a return of 8.80% compared to the index's 10.26%, reinforcing the attractiveness of its current valuation.