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, indicating a shift in the company's perceived financial health. Based on the available metrics, CION appears to be overvalued, particularly given its negative return on equity of -2.01% and a price-to-book value of 0.63, which suggests that the market may not be valuing its assets favorably. Additionally, the EV to EBITDA ratio stands at 5.19, which is relatively high compared to its peers.
In comparison to its peers, CION Investment Corp. has a significantly lower EV to EBITDA ratio of 5.45 for a competitor, indicating that it may not be as efficiently valued in the market. The dividend yield of 8.00% is attractive, but the overall financial metrics suggest caution. Over the past year, CION has underperformed the S&P 500, with a return of -15.74% compared to the index's 17.14%, reinforcing the notion that the stock may be overvalued at its current price of 10.12.