Is Transcontinental Realty Investors, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Transcontinental Realty Investors, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, particularly when considering its P/E ratio of 41, which, while high, is significantly lower than its peer average P/E of approximately 61.06. Additionally, the Price to Book Value stands at 0.38, and the EV to EBITDA ratio is 31.15, suggesting that the company may be trading at a discount relative to its assets and earnings potential.
In comparison to peers, One Liberty Properties, Inc. has a much lower P/E ratio of 17.92, while Postal Realty Trust, Inc. shows a P/E of 53.54, highlighting the variability in valuation within the sector. Despite recent underperformance against the S&P 500 over shorter time frames, Transcontinental Realty has delivered a strong year-to-date return of 48.61% compared to the S&P 500's 16.30%, reinforcing the notion that it may be undervalued relative to its growth potential.