Is Bain Capital Specialty Finance, Inc. overvalued or undervalued?

As of 24 February 2021, the valuation grade for Bain Capital Specialty Finance, Inc. moved from risky to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 9, a Price to Book Value of 0.89, and an impressive Dividend Yield of 11.45%.
In comparison to its peers, Bain Capital Specialty Finance has a lower P/E ratio than WisdomTree, Inc. at 17.96 and Dorchester Minerals LP at 14.36, both of which are considered expensive. Additionally, its EV to EBITDA ratio of 4.36 is favorable compared to the industry average, reinforcing its attractive valuation. While the stock has underperformed against the S&P 500 over the past year, its strong dividend yield and low valuation ratios suggest that it may present a compelling investment opportunity.