Is Oxford Square Capital Corp. overvalued or undervalued?

As of 8 July 2024, the valuation grade for Oxford Square Capital Corp. has moved from very attractive to does not qualify, indicating a significant deterioration in its investment appeal. The company appears to be overvalued, particularly given its negative return metrics and poor performance relative to the market. Key ratios include a Price to Book Value of 1.10, an EV to EBIT of 17.12, and an EV to EBITDA of 17.12, which suggest that the company is not generating sufficient earnings relative to its valuation.
In comparison to peers, Oxford Square Capital Corp. has a notably high EV to EBITDA ratio of 17.12, while Sculptor Capital Management, Inc. shows a much lower EV to EBITDA of 626.4353, highlighting that Oxford Square is not as favorably valued in its industry. Furthermore, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -17.21% compared to the S&P 500's 12.22%, and a staggering 10-year return of -20.78% versus 231.64% for the index. This stark contrast reinforces the notion that Oxford Square Capital Corp. is currently overvalued.