Is CTO Realty Growth, Inc. overvalued or undervalued?

As of 20 February 2025, the valuation grade for CTO Realty Growth, Inc. has moved from very attractive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current financial metrics. Key ratios include a Price to Book Value of 1.03, an EV to EBITDA of 7.38, and a ROCE of only 2.15%.
In comparison to its peers, CTO Realty Growth's valuation is concerning, particularly when looking at Diversified Healthcare Trust, which has a P/E ratio of -5.00 and an EV to EBITDA of 2.37, and Gladstone Commercial Corp., which boasts a P/E of 21.36 and an EV to EBITDA of 5.94. The stark contrast in these ratios suggests that CTO Realty Growth is not only struggling but is also priced higher than more stable alternatives in the market. Additionally, while CTO Realty Growth has shown a 1-week stock return of 1.38%, it has underperformed the S&P 500 over the year, further reinforcing the notion that it is overvalued.