Is Sachem Capital Corp. overvalued or undervalued?

As of 14 November 2024, Sachem Capital Corp. has moved from a very attractive to a risky valuation grade. The company is currently considered overvalued given its negative financial metrics, including a price-to-book value of 0.29 and an EV to EBITDA ratio of -2.69. Additionally, the company has a return on equity (ROE) of -23.89%, indicating significant losses.
In comparison to its peers, Sachem Capital Corp. stands out negatively, particularly against Transcontinental Realty Investors, Inc., which has a P/E ratio of 43.81, and Chicago Atlantic Real Estate Finance, Inc., with a P/E of 7.75. The company's dividend yield of 15.54% may seem attractive, but it is overshadowed by its overall financial instability and poor performance, as evidenced by a year-to-date return of -20.00% compared to a 2.44% return for the S&P 500. Overall, the valuation suggests that Sachem Capital Corp. is overvalued in the current market environment.