Is Pangaea Logistics Solutions Ltd. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Pangaea Logistics Solutions Ltd. moved from fair to very attractive. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 12, a Price to Book Value of 0.73, and an EV to EBITDA of 5.39, which suggest that the stock is trading at a discount relative to its earnings and asset value.
In comparison to its peers, Pangaea's P/E ratio of 12 is significantly lower than Limbach Holdings, Inc. at 45.45 and Costamare, Inc. at 3.25, indicating a more favorable valuation. Additionally, Pangaea's EV to EBITDA ratio is also more attractive compared to Limbach's 29.17 and Global Ship Lease's 2.39. Despite recent underperformance against the S&P 500 over the past year, the company's strong dividend yield of 5.63% and low valuation ratios suggest it may present a compelling investment opportunity.