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. Key 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. stands out with a very attractive valuation and a P/E of 731.77. Notably, Sunstone's recent stock performance has been underwhelming, with a year-to-date return of -24.49% compared to the S&P 500's gain of 16.30%, indicating a significant underperformance relative to the broader market.