Is AFC Gamma, Inc. overvalued or undervalued?

As of 10 March 2022, the valuation grade for AFC Gamma, Inc. moved from very expensive to very attractive, indicating a significant shift in its perceived value. The company is currently undervalued, with a P/E ratio of 6, a Price to Book Value of 0.62, and an EV to EBITDA of 4.58. These ratios suggest that the stock is trading at a discount compared to its earnings and asset value.
In comparison to its peers, AFC Gamma, Inc. has a notably lower P/E ratio than Willis Lease Finance Corp., which stands at 8.73, and Atlanticus Holdings Corp. at 7.07, highlighting its attractive valuation. Additionally, the PEG ratio of 0.08 further emphasizes the potential for growth relative to its price. Despite recent underperformance compared to the S&P 500, with a year-to-date return of -43.7% versus 2.44% for the index, the current valuation metrics suggest that AFC Gamma, Inc. presents a compelling investment opportunity.