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 valuation outlook. The company appears undervalued, with a P/E ratio of 9, a Price to Book Value of 0.79, and an EV to EBIT of 4.43. In comparison to peers, TPG, Inc. is considered expensive with a P/E of 1024.14, while Sixth Street Specialty Lending, Inc. has a P/E of 12.44 and is also rated very attractive.
Despite the positive valuation metrics, Barings BDC has underperformed relative to the S&P 500 over multiple periods, with a year-to-date return of -3.45% compared to the S&P 500's 12.22%. This trend continues over longer periods, highlighting a potential disconnect between its attractive valuation and market performance.