Is Rithm Capital Corp. overvalued or undervalued?

As of 5 May 2021, Rithm Capital Corp. moved from a grade of risky to very attractive, indicating a significant improvement in its valuation outlook. The company is currently undervalued, with a P/E ratio of 8, which is notably lower than its peer Apartment Income REIT Corp. at 8.87 and significantly lower than the expensive Kite Realty Group Trust at 52.26. Additionally, Rithm Capital boasts a Price to Book Value of 0.75 and an impressive Dividend Yield of 776.48%, further supporting its undervaluation status.
In terms of operational efficiency, Rithm Capital's ROCE stands at 46.12%, which is a strong indicator of its profitability relative to capital employed. The EV to EBITDA ratio of 1.43 also highlights its attractive valuation compared to peers. While the stock has underperformed the S&P 500 over the past year, with a return of 1.63% versus the index's 10.26%, the overall metrics suggest that Rithm Capital Corp. presents a compelling investment opportunity at its current price of 11.23.