Is Medallion Financial Corp. overvalued or undervalued?

As of 21 October 2024, the valuation grade for Medallion Financial Corp. has moved from very attractive to attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 6, a Price to Book Value of 0.66, and an impressive Dividend Yield of 408.45%.
In comparison to its peers, Medallion Financial Corp. has a lower P/E ratio than Stellus Capital Investment Corp. at 10.28 and Saratoga Investment Corp. at 12.07, indicating that it is trading at a discount relative to these companies. Additionally, its EV to EBITDA ratio of 0.54 is also more favorable compared to BlackRock Capital Investment Corp. at 5.37. Despite recent stock performance showing a slight decline over the past week, Medallion has outperformed the S&P 500 over the past year with a return of 25.27% compared to the index's 10.26%.