Is Ready Capital Corp. overvalued or undervalued?

As of 7 August 2024, the valuation grade for Ready Capital Corp. has moved from very attractive to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 0.38, an EV to EBITDA of 1.28, and a Dividend Yield of 21.62%. In comparison, its peer, which has a valuation grade of risky, shows a P/E ratio of -1.8462 and an EV to EBITDA of 1.4935, suggesting that Ready Capital Corp. is not favorably positioned relative to its peers.
The stock has underperformed significantly against the S&P 500, with a year-to-date return of -36.66% compared to the index's 12.22%, and a one-year return of -46.34% against 17.14% for the S&P 500. This stark contrast reinforces the notion that Ready Capital Corp. is currently overvalued in the market.