Is Summit Hotel Properties, Inc. overvalued or undervalued?

As of 31 March 2025, the valuation grade for Summit Hotel Properties, Inc. has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company appears undervalued based on its current metrics, with a P/E ratio of 12, a Price to Book Value of 0.60, and an EV to EBITDA ratio of 2.20. These ratios suggest that the company is trading at a discount compared to its peers.
In comparison to notable peers, Dynex Capital, Inc. has a P/E ratio of 18.29 and an EV to EBITDA of 2.49, while Redwood Trust, Inc. boasts a P/E of 20.98 and an EV to EBITDA of 0.40. Summit's PEG ratio of 0.04 further supports the undervaluation narrative, indicating strong growth potential relative to its price. Despite recent underperformance against the S&P 500 over longer periods, the current valuation metrics suggest that Summit Hotel Properties, Inc. presents a compelling investment opportunity.