Is Transcontinental Realty Investors, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Transcontinental Realty Investors, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 41, which is significantly lower than the peer average of 61.06, and a Price to Book Value of 0.38, suggesting that the stock is trading at a discount relative to its book value. Additionally, the EV to EBITDA ratio stands at 31.15, which, while high, reflects the company's current market valuation compared to its earnings potential.
In comparison to its peers, Transcontinental Realty Investors, Inc. has a P/E ratio that is more favorable than CTO Realty Growth, Inc. (P/E of -61.47) and One Liberty Properties, Inc. (P/E of 17.92), highlighting its relative strength in the market. The company's return performance has not been disclosed, but the valuation metrics suggest that it is positioned well against the broader market. Overall, the combination of these ratios and the favorable grade change supports the conclusion that Transcontinental Realty Investors, Inc. is undervalued in the current market environment.