Is BrightSphere Investment Group, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for BrightSphere Investment Group, Inc. has moved from expensive to fair. The company is currently fairly valued, with a P/E ratio of 12, which is competitive compared to peers like New Mountain Finance Corp. at 10.10 and Oaktree Specialty Lending Corp. at 133.65. Additionally, BrightSphere's EV to EBITDA stands at 5.54, while its PEG ratio is notably low at 0.26, indicating potential for growth relative to its price.
In comparison to its peers, BrightSphere demonstrates a favorable position, especially given its high ROE of 420.50%, despite the negative capital employed affecting its ROCE. The company has outperformed the S&P 500 over various time frames, including a 1Y return of 47.02% compared to the index's 10.26%, reinforcing its valuation narrative. Overall, BrightSphere appears to be fairly positioned in the market, reflecting its current valuation metrics and performance against industry peers.