Is Whitestone REIT overvalued or undervalued?

As of 31 October 2025, the valuation grade for Whitestone REIT has moved from attractive to very attractive, indicating a stronger positive outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 40, which is relatively high compared to peers like TPG RE Finance Trust, Inc. with a P/E of 11.75 and Gladstone Commercial Corp. at 20.11. Additionally, Whitestone's EV to EBITDA stands at 13.57, which is more favorable than Summit Hotel Properties, Inc. at 44.62, further supporting the undervaluation thesis.
In terms of returns, while Whitestone REIT has underperformed the S&P 500 year-to-date with a return of -11.36% compared to the index's 16.30%, it has shown resilience over the longer term with a 3-year return of 42.40% against the S&P 500's 76.66%. This suggests that despite recent challenges, the company's long-term growth potential remains promising.