Is Whitestone REIT overvalued or undervalued?

As of 30 July 2025, the valuation grade for Whitestone REIT has moved from fair to very attractive, indicating a positive shift in its investment appeal. The company appears undervalued, with a P/E ratio of 40, which is higher than peers like TPG RE Finance Trust, Inc. at 11.75 and Gladstone Commercial Corp. at 20.11. Additionally, the EV to EBITDA ratio stands at 13.57, while the PEG ratio is 1.67, suggesting that the stock may offer growth potential relative to its price.
In terms of performance, Whitestone REIT has faced challenges, with a year-to-date return of -8.68% compared to the S&P 500's 12.22%, although it has outperformed the index over the last five years with a return of 109.72% versus 96.61%. This mixed performance reinforces the notion that while the stock may be undervalued, it has not kept pace with broader market trends recently.