Is Sunstone Hotel Investors, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Sunstone Hotel Investors, Inc. moved from fair to attractive, indicating a more favorable assessment of the company's value. The company is currently considered undervalued, with a P/E ratio of 50, a Price to Book Value of 0.84, and an EV to EBITDA ratio 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 despite a significantly higher P/E of 731.77.
Despite the positive valuation change, Sunstone's stock has underperformed relative to the S&P 500, with a year-to-date return of -19.85% compared to the S&P's 14.49%. This discrepancy highlights the potential for recovery in the stock's performance, aligning with its attractive valuation metrics.