Is Sotherly Hotels, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Sotherly Hotels, Inc. moved from expensive to fair. Based on the provided metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 34, a Price to Book Value of 0.74, and an EV to EBIT of 0.05, which indicate a relatively low valuation compared to its earnings potential.
In comparison to its peers, Sotherly Hotels, Inc. has a P/E ratio of -11.8850, while ACRES Commercial Realty Corp. has a P/E of 7.2221, and Strawberry Fields REIT, Inc. stands at 24.9110. This suggests that Sotherly is undervalued relative to some of its peers, particularly those with higher P/E ratios. Although return data is not available, the lack of significant stock performance against the S&P 500 reinforces the notion that the stock is currently fairly valued in the market context.