Is Barings BDC, Inc. overvalued or undervalued?

As of 23 March 2021, the valuation grade for Barings BDC, Inc. moved from risky to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 9, a price-to-book value of 0.79, and an EV to EBIT of 4.43. These ratios suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Barings BDC, Inc. has a lower P/E ratio than Oaktree Specialty Lending Corp., which stands at 133.65, and a competitive EV to EBITDA ratio compared to New Mountain Finance Corp. at 4.10. The company's dividend yield of 12.94% further enhances its attractiveness to investors. Despite recent underperformance against the S&P 500, the valuation metrics indicate that Barings BDC, Inc. presents a compelling investment opportunity at its current price of 8.95.