Asset ValuationThe applied capitalization rate to Watergate suggests a decrease in asset value, indicating a less optimistic outlook on its valuation.
Financial ValuationELME's discount on an ICR basis versus peers is justified due to their exposure to Watergate, lower asset quality compared to large cap market funds, and a higher cost of debt coupled with heavier general and administrative expenses.
Stock PerformanceELME is trading at a premium on a price to cash flow from operations basis relative to its peers, which is impacted by its higher general and administrative costs and interest expenses.