Is Oxford Square Capital Corp. overvalued or undervalued?

As of 13 August 2024, the valuation grade for Oxford Square Capital Corp. has moved from very attractive to does not qualify, indicating a significant downgrade in its investment appeal. The company is currently assessed as overvalued, particularly given its negative P/E ratio due to losses, a Price to Book Value of 1.10, and an EV to EBITDA of 17.12. The dividend yield of 1091.52% appears misleading in the context of overall performance, as the company has a ROE of -0.32% and a ROCE of 6.60%.
In comparison to its peers, Oxford Square Capital Corp. is notably less favorable than Stellus Capital Investment Corp., which has a P/E of 10.28 and an EV to EBITDA of 3.80, and Saratoga Investment Corp., with a P/E of 12.07 and an EV to EBITDA of 1.75. The stark contrast in valuation metrics highlights that Oxford Square is not only overvalued but also struggling significantly compared to its peers. Additionally, the company's stock has underperformed relative to the S&P 500 across multiple time frames, including a 1Y return of -26.35% compared to the S&P 500's 10.26%, reinforcing the negative valuation outlook.