Is Star Holdings (United States) overvalued or undervalued?

Jun 25 2025 09:36 AM IST
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As of February 18, 2025, Star Holdings is considered overvalued and risky due to poor financial metrics, including a Price to Book Value of 0.31, negative ROCE and ROE, and a year-to-date return of -19.42%, significantly underperforming compared to its peers and the S&P 500.
As of 18 February 2025, the valuation grade for Star Holdings has moved from fair to risky, indicating a significant deterioration in its financial health. The company is currently considered overvalued given its negative performance metrics, including a Price to Book Value of 0.31 and an EV to Sales ratio of 0.63. Additionally, the ROCE stands at -2.17%, and the ROE is at -11.89%, further underscoring the challenges the company faces.

In comparison to its peers, Star Holdings has a P/E ratio of -2.7029, while Flame Acquisition Corp. has a P/E of -6.8102, highlighting that Star Holdings is not only underperforming but also carries a higher risk profile. The company's recent stock performance has been poor, with a year-to-date return of -19.42%, contrasting sharply with the S&P 500's modest gain of 2.44% during the same period. Overall, Star Holdings appears to be overvalued based on its current financial ratios and peer comparisons.
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