Is Seven Hills Realty Trust overvalued or undervalued?

As of 17 February 2022, the valuation grade for Seven Hills Realty Trust moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios supporting this assessment include a P/E ratio of 10, an EV to EBITDA of 2.60, and a Price to Book Value of 0.66, all of which suggest that the company is trading at a discount compared to its peers.
In comparison to its peers, Seven Hills Realty Trust's P/E ratio of 10 is notably lower than Transcontinental Realty Investors, Inc., which has a P/E of 43.81, and Chicago Atlantic Real Estate Finance, Inc., which stands at 7.75. This disparity highlights the potential for upside in Seven Hills Realty Trust's valuation. Additionally, while the company has underperformed the S&P 500 over the past year with a return of -2.95% compared to the index's 10.26%, its strong ROCE of 22.23% indicates robust operational efficiency that could drive future growth.