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. The company appears to be fairly valued based on its current metrics. Notable ratios include a P/E ratio of 50, a Price to Book Value of 0.84, and an EV to EBITDA of 7.86.
In comparison to peers, CareTrust REIT, Inc. has a P/E of 35.16, while SL Green Realty Corp. boasts a significantly higher P/E of 731.77, indicating that Sunstone's valuation is more reasonable within its industry context. Despite its fair valuation, the company's stock has underperformed against the S&P 500, with a year-to-date return of -23.65% compared to the index's 16.30%.