Is Medallion Financial Corp. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Medallion Financial Corp. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its key ratios, including a P/E ratio of 6, a Price to Book Value of 0.66, and an EV to EBITDA of 0.54. In comparison to peers, Medallion's P/E ratio is significantly lower than Stellus Capital Investment Corp., which has a P/E of 10.86, and Saratoga Investment Corp. at 9.82, suggesting that Medallion may be undervalued relative to its industry.
Additionally, Medallion has demonstrated strong performance with a YTD return of 14.48%, outpacing the S&P 500's return of 12.22%, and a remarkable 1Y return of 38.17% compared to the S&P 500's 17.14%. This performance reinforces the notion that the stock is undervalued, especially given its attractive valuation metrics relative to peers.