ACR Valuation - Is Acres Commercial Realty Corp Over or Undervalued?

Comprehensive analysis of Acres Commercial Realty Corp valuation metrics including P/E, P/B, P/S, and EV/EBITDA ratios

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Current Stock Price

$20.05

Market Cap

$0.15B

Valuation Date

Jan 21, 2026

Valuation Verdict

+

Potentially Undervalued

Based on valuation multiples, ACR appears attractively priced. 2 key metrics suggest potential value opportunity.

Key Valuation Metrics

These four fundamental valuation ratios help determine if ACR is trading at a fair price relative to its earnings, assets, revenue, and cash flow generation.

P/E Ratio (Price-to-Earnings)
Good
21.33x
Near market average
Investors pay $21.33 for every $1 of annual earnings
P/B Ratio (Price-to-Book)
Good
0.34x
Trading below book value
Stock trades at 0.34x its book value per share
P/S Ratio (Price-to-Sales)
Good
1.67x
Low relative to sales
Market values each $1 of revenue at $1.67
EV/EBITDA
N/A
EBITDA data unavailable

How to Interpret These Metrics

P/E Ratio: Lower P/E often indicates better value, but compare against industry peers. High-growth companies typically have higher P/E ratios. Market average is 15-20x.
P/B Ratio: Values below 1.0 suggest the stock trades below its net asset value, which could indicate undervaluation or fundamental problems. Technology companies often trade at higher P/B ratios.
P/S Ratio: Useful for unprofitable companies or comparing revenue efficiency. Lower is generally better, but high-margin businesses can justify higher P/S ratios.
EV/EBITDA: Accounts for debt and excludes non-cash expenses, making it ideal for comparing companies with different capital structures. Values under 10x often indicate good value.

How ACR Compares to Peers

What This Means for Investors

Potential Value Opportunity

Acres Commercial Realty Corp (ACR) currently trades at valuation multiples that appear attractive relative to historical averages and peer comparisons. This could represent a buying opportunity for long-term investors who believe in the company's fundamentals. However, always investigate why the market is pricing the stock this way - there may be legitimate concerns about future growth or profitability.

Bullish Considerations

  • Reasonable price relative to book value
  • Attractive price-to-sales multiple
  • Multiple metrics suggest undervaluation

Bearish Considerations

    Complete Your Analysis

    Valuation is just one piece of the puzzle. Get the complete picture of ACR with our comprehensive analysis tools.

    Frequently Asked Questions

    What is ACR's P/E ratio and what does it mean?

    ACR has a P/E (Price-to-Earnings) ratio of 21.33. This means investors are paying $21.33 for every $1 of annual earnings. A lower P/E generally suggests better value, but it's important to compare against industry peers and growth prospects. The market average P/E is typically 15-20x.

    Is ACR stock overvalued or undervalued?

    Based on our analysis of key valuation metrics (P/E, P/B, P/S, EV/EBITDA), ACR appears potentially undervalued. Based on valuation multiples, ACR appears attractively priced. 2 key metrics suggest potential value opportunity. However, valuation is just one factor to consider alongside growth prospects, competitive position, and market conditions.

    What is a good P/E ratio for ACR?

    There's no single "good" P/E ratio as it varies by industry and growth stage. For Acres Commercial Realty Corp, compare the current P/E of 21.33 against: (1) Industry peers, (2) Historical average P/E for ACR, (3) Expected earnings growth rate. High-growth companies often justify higher P/E ratios, while mature companies typically trade at lower multiples.

    How do I use valuation ratios to make investment decisions?

    Valuation ratios are screening tools, not buy/sell signals. Use them to: (1) Compare ACR against competitors, (2) Identify potential over/undervaluation, (3) Understand what you're paying for earnings, assets, or sales. Combine valuation analysis with fundamental research, growth prospects, and technical analysis for comprehensive decision-making.

    What is EV/EBITDA and why does it matter?

    EV/EBITDA (Enterprise Value to EBITDA) is N/A for ACR. This ratio is useful because it accounts for debt and excludes non-cash expenses, making it better for comparing companies with different capital structures. Lower EV/EBITDA generally indicates better value. It's particularly useful for comparing companies in capital-intensive industries.

    Disclaimer: This valuation analysis is for informational and educational purposes only and should not be considered investment advice. Valuation metrics are just one factor in investment decisions. Always conduct comprehensive research and consult with a qualified financial advisor before making investment decisions. Past performance and current valuations do not guarantee future results.

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