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 downgrade in its perceived investment quality. The company appears to be overvalued given its current financial metrics, particularly with a P/E ratio that is not applicable due to loss-making status, a Price to Book Value of 1.03, and an EV to EBITDA ratio of 7.38, which is relatively high compared to peers.
In comparison to its peers, CTO Realty Growth, Inc. has a notably negative valuation with a P/E ratio of -61.47, while TPG RE Finance Trust, Inc. and Gladstone Commercial Corp. boast P/E ratios of 11.75 and 20.11, respectively. Additionally, the company's return performance has lagged significantly behind the S&P 500, with a year-to-date return of -16.49% compared to the index's 12.22%, and a three-year return of -19.39% versus 70.41% for the S&P 500, reinforcing the notion of overvaluation.