Is Sunstone Hotel Investors, Inc. overvalued or undervalued?

As of 21 February 2025, the valuation grade for Sunstone Hotel Investors, Inc. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 50, an EV to EBITDA of 7.86, and a Price to Book Value of 0.84.
In comparison to peers, CareTrust REIT, Inc. has a more attractive P/E of 29.30 and an EV to EBITDA of 18.40, while National Health Investors, Inc. shows a fair valuation with a P/E of 22.15 and an EV to EBITDA of 11.75. Notably, Sunstone's return over the past year has underperformed the S&P 500, which may indicate a lack of investor confidence despite its current valuation status.