Greystone Housing Impact Investors LP (NYSE:GHI) has a P/E ratio of 19.3x, slightly above the U.S. median of 18x, raising questions about its valuation amidst declining earnings. Despite an overall market growth, the company’s earnings have decreased significantly, with a 68% drop in the past year and a total decline of 50% over three years. Analysts predict a 122% earnings growth next year, higher than the market’s 15%, yet this optimism isn’t reflected in the P/E ratio, suggesting investor skepticism about future stability. Caution is advised, as there are four warning signs regarding the company’s performance.