Is Great Elm Capital Corp. overvalued or undervalued?

As of 3 August 2023, Great Elm Capital Corp. has moved from a valuation grade of "does not qualify" to "very attractive." The company appears to be undervalued, given its current P/E ratio of 28 compared to a peer average of approximately 26.66 for companies like Medallion Financial Corp. and Monroe Capital Corp., which have P/E ratios of 5.88 and 19.63, respectively. Additionally, the Price to Book Value stands at 0.93, and the EV to EBITDA is 5.77, indicating potential for growth relative to its peers.
Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -6.10% compared to the index's 2.44%, the high dividend yield of 903.47% and a ROCE of 16.18% suggest strong operational efficiency. Given these factors, Great Elm Capital Corp. is positioned as an attractive investment opportunity in the current market landscape.