Is Service Properties Trust overvalued or undervalued?

As of 7 August 2023, the valuation grade for Service Properties Trust has moved from very attractive to risky. This indicates a significant shift in the company's perceived value, suggesting that it is currently overvalued. Key ratios reveal a price-to-book value of 0.53, an EV to EBITDA of 0.54, and an EV to sales ratio of 0.16, all of which highlight the company's low valuation metrics compared to its peers.
In comparison to its industry, Service Properties Trust's performance is starkly contrasted with companies like LTC Properties, Inc., which has a P/E ratio of 17.18 and an EV to EBITDA of 9.73, and Getty Realty Corp., with a P/E of 21.89 and an EV to EBITDA of 9.48. These peers are classified as very attractive, further emphasizing the risk associated with Service Properties Trust. Additionally, the company has underperformed significantly over the past year, with a return of -51.87% compared to the S&P 500's 10.26%.