Is Claros Mortgage Trust, Inc. overvalued or undervalued?

As of 6 May 2024, the valuation grade for Claros Mortgage Trust, Inc. has moved from very attractive to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued, particularly given its troubling financial ratios, including a price-to-book value of 0.21 and an EV to EBITDA ratio of -15.25. Additionally, the return on equity (ROE) stands at -12.65%, highlighting ongoing losses that further complicate its valuation.
In comparison to peers, Claros Mortgage Trust's valuation metrics appear unfavorable; for instance, Ready Capital Corp. has a more stable EV to EBITDA ratio of 1.3068, despite both companies being categorized as risky. The current stock price of $3.09 is significantly lower than its 52-week high of $9.81, reflecting a steep decline in market confidence. Notably, the company's year-to-date return of -31.64% starkly contrasts with the S&P 500's modest gain of 2.44%, reinforcing the notion that Claros Mortgage Trust is currently overvalued in the market.