Is Portman Ridge Finance Corp. overvalued or undervalued?

As of 13 March 2025, the valuation grade for Portman Ridge Finance Corp. has moved from very attractive to risky. The company appears to be overvalued given its current financial metrics. The price-to-book value stands at 0.62, while the EV to EBITDA ratio is 6.67, and the dividend yield is an astonishing 2099.72%, which is not sustainable. The return on equity (ROE) is notably negative at -5.80%, indicating poor profitability.
In comparison to its peers, Portman Ridge Finance Corp. has a P/E ratio of -10.6472, while Gladstone Capital Corp. has a P/E of 6.8208 and Stellus Capital Investment Corp. shows a P/E of 10.2763, both of which are significantly more favorable. The company’s recent stock performance has been underwhelming, with a year-to-date return of -22.71%, contrasting sharply with the S&P 500's 2.44% gain in the same period, further reinforcing the perception of overvaluation.