Is CION Investment Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for CION Investment Corp. has moved from very attractive to risky. This change indicates a shift in the company's perceived value, suggesting that it is currently overvalued. The company's P/E ratio is not applicable due to losses, while its price-to-book value stands at 0.63, and it has an EV to EBITDA ratio of 5.19. Additionally, the dividend yield is notably high at 8.00%, but the return on equity (ROE) is negative at -2.01%, reflecting underlying financial challenges.
In comparison to peers, CION Investment Corp. has a significantly lower valuation with a P/E ratio of -31.73 and an EV to EBITDA ratio of 5.25. This places it at a disadvantage relative to its industry, indicating that it may not be able to sustain its current price levels. Furthermore, the company's recent stock performance has underperformed against the S&P 500, particularly over the past year, where it has declined by 24.29% compared to a 10.26% gain in the index. Overall, these factors contribute to the conclusion that CION Investment Corp. is overvalued at its current price of 9.29.