Is Sotherly Hotels, Inc. overvalued or undervalued?

As of 8 August 2024, Sotherly Hotels, Inc. has moved from a fair to attractive valuation grade. The company is currently considered undervalued based on its financial metrics. The P/E ratio stands at 34, which is higher than the peer average of 38.88 for Sotherly Hotels, Inc. compared to Mobile Infrastructure Corp. at -21.21 and Strawberry Fields REIT, Inc. at 27.37. Additionally, the Price to Book Value is notably low at 0.74, and the ROCE is exceptionally high at 157.31%, indicating strong profitability relative to capital employed.
In comparison to its peers, Sotherly Hotels, Inc. shows a favorable EV to EBITDA ratio of 0.03, while Mobile Infrastructure Corp. has a significantly higher EV to EBITDA of 35.32, reflecting the latter's riskier valuation. The recent stock performance of Sotherly Hotels, Inc. has outpaced the S&P 500 over the past week, with a return of 27.43% compared to a slight decline of 0.13% for the index, reinforcing the attractiveness of its current valuation.