Is Postal Realty Trust, Inc. overvalued or undervalued?

As of 11 May 2021, the valuation grade for Postal Realty Trust, Inc. moved from risky to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, particularly when considering its P/E ratio of 64, which is notably high compared to peers like CTO Realty Growth, Inc. with a P/E of -61.47 and Invesco Mortgage Capital, Inc. at 12.88. Additionally, the EV to EBITDA ratio stands at 9.16, while the PEG ratio is an impressive 0.32, suggesting strong growth potential relative to its price.
In terms of peer comparison, Postal Realty Trust, Inc. has a more favorable valuation profile than CTO Realty Growth, Inc. and BRT Apartments Corp., both categorized as risky. Despite its high P/E ratio, the company’s robust dividend yield of 353.47% and a return on capital employed (ROCE) of 9.05% further support its attractiveness. Over the past year, Postal Realty Trust has returned 11.22%, lagging behind the S&P 500's 17.14%, but it has outperformed the index year-to-date with a return of 25.29% compared to the S&P 500's 12.22%.