Is Power REIT overvalued or undervalued?

As of 31 March 2023, Power REIT's valuation grade has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, primarily due to its negative performance metrics. Key ratios include a Price to Book Value of 0.72, an EV to EBIT of -1.90, and a ROCE of -28.86%.
In comparison to its peers, Power REIT's valuation appears unfavorable, particularly when juxtaposed with Strawberry Fields REIT, which has a P/E ratio of 27.37, and Bluerock Homes Trust, which shows a P/E of 38.27. The stark contrast in these ratios highlights Power REIT's challenging position within the market. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -17.29%, compared to a modest gain of 2.44% for the S&P 500, further reinforcing the notion of overvaluation.