Is Blackrock TCP Capital Corp. overvalued or undervalued?

As of 7 August 2024, Blackrock TCP Capital Corp. has moved from a valuation grade of very attractive to risky. The company is currently overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.85, an EV to EBIT of 19.70, and a Dividend Yield of 12.25%. The company's ROE stands at -6.05%, indicating poor profitability, while its ROCE is only 4.21%, further highlighting operational inefficiencies.
In comparison to its peers, Blackrock TCP Capital Corp. has a significantly higher EV to EBITDA ratio of 19.70 compared to Dorchester Minerals LP at 8.86 and Bain Capital Specialty Finance, Inc. at 4.10, both of which are rated as very attractive. Additionally, WisdomTree, Inc. is considered expensive with a P/E of 17.96, illustrating that Blackrock's valuation does not align favorably within its competitive landscape. The stock's performance has also lagged behind the S&P 500, with a year-to-date return of -14.24% compared to the index's 2.44%, reinforcing the overvaluation perspective.