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

As of 24 February 2021, Bain Capital Specialty Finance, Inc. has moved from a risky to a very attractive valuation grade. The company appears to be undervalued, with a P/E ratio of 9, a Price to Book Value of 0.89, and an EV to EBIT of 4.36. In comparison to its peers, Bain Capital's P/E ratio of 9.45 is lower than Blackstone Secured Lending Fund's 10.85 and higher than Viper Energy, Inc.'s 8.34, indicating a competitive position within the industry.
Despite recent underperformance, with a year-to-date return of -15.18% compared to the S&P 500's 12.22%, the company's high dividend yield of 11.45% and strong ROCE of 19.89% suggest potential for recovery and value appreciation. Overall, the current metrics support the conclusion that Bain Capital Specialty Finance, Inc. is undervalued relative to its peers and the broader market.