Is Strawberry Fields REIT, Inc. overvalued or undervalued?

As of 8 August 2025, the valuation grade for Strawberry Fields REIT, Inc. has moved from fair to very attractive, indicating a favorable shift in its valuation outlook. The company appears to be undervalued, supported by its P/E ratio of 26, which is lower than the peer average of approximately 24.91 for similar companies, and an EV to EBITDA ratio of 0.55, suggesting strong earnings potential relative to its enterprise value. Additionally, the ROE stands at a robust 25.15%, further emphasizing its profitability compared to peers like Ellington Credit Co. with a negative P/E ratio and ACRES Commercial Realty Corp. with a P/E of 7.22.
In terms of recent performance, Strawberry Fields REIT, Inc. has outperformed the S&P 500 with a year-to-date return of 20.3% compared to the index's 12.22%. This strong performance reinforces the notion that the stock is currently undervalued relative to its growth potential and market performance.