Is The RMR Group, Inc. overvalued or undervalued?

As of 9 August 2019, the valuation grade for The RMR Group, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation metrics. The company appears to be undervalued, particularly when considering its P/E ratio of 23, which is lower than the peer average of approximately 25.86, and an impressive dividend yield of 11.59%. Additionally, the EV to EBITDA ratio stands at 5.75, suggesting that the company is trading at a reasonable valuation compared to its earnings potential.
In comparison to its peers, Enphys Acquisition Corp. has a lower P/E ratio of 19.02, while Churchill Capital Corp. VII does not qualify for a meaningful comparison due to negative metrics. Notably, The RMR Group has underperformed against the S&P 500 over multiple periods, with a YTD return of -17.59% compared to the index's 12.22%, and a 5Y return of -43.71% versus 96.61% for the S&P 500, reinforcing the notion that the stock may be undervalued relative to its performance and potential.