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, indicating a significant deterioration in its investment appeal. The company appears to be overvalued, particularly when considering its Price to Book Value of 0.62, EV to EBITDA of 6.67, and a staggering Dividend Yield of 2099.72%. In comparison to peers, GCM Grosvenor, Inc. has a P/E ratio of 78.97, while Gladstone Capital Corp. shows a more favorable EV to EBITDA of 5.80, highlighting Portman Ridge's relative weakness in valuation metrics.
The company's stock performance has been notably poor, with a year-to-date return of -24.72% compared to the S&P 500's gain of 12.22%, and a one-year return of -33.15% against the S&P 500's 17.14%. This stark contrast reinforces the notion that Portman Ridge Finance Corp. is currently overvalued in the market.