Is Sunstone Hotel Investors, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Sunstone Hotel Investors, Inc. moved from very expensive to fair. Based on the current metrics, the company appears to be undervalued. The P/E ratio stands at 50, while the EV to EBITDA ratio is 7.86, and the Price to Book Value is 0.84, which indicates that the stock may be trading below its intrinsic value compared to its peers.
In comparison to its peers, CareTrust REIT, Inc. has a P/E ratio of 35.16, and SL Green Realty Corp. shows a very attractive valuation with a P/E of 731.77. This suggests that Sunstone is relatively undervalued in its sector. Notably, the company's stock has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -25.25% compared to the S&P 500's 16.30%, reinforcing the notion that the stock may be undervalued.