Is Carlyle Secured Lending, Inc overvalued or undervalued?

As of 23 February 2021, the valuation grade for Carlyle Secured Lending, Inc. moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, with a P/E ratio of 11, a Price to Book Value of 1.13, and an EV to EBITDA of 6.52, all suggesting that the stock is trading at a discount compared to its earnings and asset values.
In comparison to its peers, Carlyle Secured Lending's P/E ratio is lower than BrightSphere Investment Group, Inc. at 17.83 and Virtus Investment Partners, Inc. at 15.45, reinforcing its attractive valuation. Additionally, its EV to EBITDA ratio of 6.52 is competitive against Goldman Sachs BDC, Inc. at 4.54, indicating a favorable position in the market. However, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -24.76% compared to the index's 12.22%, highlighting potential market concerns despite its attractive valuation metrics.