Is Whitestone REIT overvalued or undervalued?

As of 31 October 2025, the valuation grade for Whitestone REIT moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears undervalued based on its current metrics, with a P/E ratio of 40, a Price to Book Value of 2.90, and an EV to EBITDA ratio of 13.57. In comparison to peers, TPG RE Finance Trust, Inc. has a significantly lower P/E of 11.75, while Gladstone Commercial Corp. shows a P/E of 20.11, highlighting Whitestone's relative undervaluation within the sector.
Despite a year-to-date return of -6.99% compared to the S&P 500's 16.30%, Whitestone REIT has demonstrated strong performance over longer periods, with a 3-year return of 49.43% versus the S&P 500's 76.66%. This suggests that while recent performance has lagged, the long-term potential remains robust, reinforcing the notion that the stock is undervalued.