Is Stratus Properties, Inc. overvalued or undervalued?

As of 14 August 2023, the valuation grade for Stratus Properties, Inc. has moved from very expensive to risky, indicating a significant shift in its perceived value. Based on the analysis, the company appears to be overvalued. Key ratios reveal a Price to Book Value of 0.92, an EV to EBIT of -14.46, and an EV to EBITDA of -28.53, all of which suggest financial distress and inefficiency in generating earnings relative to its valuation.
In comparison to its peers, Stratus Properties, Inc. has a notably lower EV to EBITDA ratio than Redfin Corp. at -10.46 and Anywhere Real Estate, Inc. at 1.10, both of which are also classified as risky. Additionally, while FRP Holdings, Inc. is rated fair with a P/E ratio of 75.43, Stratus's lack of a P/E ratio due to losses highlights its challenges. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -14.50% compared to the index's 2.44%, further reinforcing the notion of overvaluation.