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 appears to be overvalued given its financial metrics, particularly with a price-to-book value of 0.29 and negative EV to EBIT and EV to EBITDA ratios of -2.79 and -2.69, respectively. Additionally, the company has a significant dividend yield of 15.54%, which may attract some investors despite its negative return on equity of -23.89%.
In comparison to its peers, Sachem Capital Corp. has a less favorable valuation profile, with its EV to EBITDA ratio being significantly worse than Industrial Logistics Properties Trust, which stands at 0.7955, and Transcontinental Realty Investors, Inc., which has a much higher P/E ratio of 61.0588. The stock has underperformed against the S&P 500, particularly over the past year with a return of -53.46% compared to the S&P 500's 17.14%, reinforcing the notion that the stock is overvalued in its current state.