Is Mobile Infrastructure Corp. overvalued or undervalued?

As of 12 May 2023, the valuation grade for Mobile Infrastructure Corp. has moved from does not qualify to risky, indicating increased concerns regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a price-to-book value of 0.99 and an EV to EBITDA ratio of 34.43, which suggests that investors are paying a high price relative to its earnings potential. Additionally, the negative return on equity (ROE) of -4.94% and a return on capital employed (ROCE) of only 0.58% further highlight the company's struggles.
In comparison to its peers, Mobile Infrastructure Corp. has a significantly higher EV to EBITDA ratio than AG Mortgage Investment Trust, Inc., which stands at 0.2050, and Ellington Credit Co. at 7.6691, both of which are classified as very attractive. This stark contrast suggests that Mobile Infrastructure Corp. is not only overvalued but also carries higher risk relative to its peers. While the company's recent stock performance has outpaced the S&P 500 over one week and one month, the overall trend shows a decline year-to-date, reinforcing the notion that it may not be a sound investment at its current valuation.