Is Crescent Capital BDC, Inc. overvalued or undervalued?

As of 24 February 2021, the valuation grade for Crescent Capital BDC, Inc. moved from attractive to very attractive. Based on the analysis, the company appears to be undervalued. The P/E ratio stands at 11, which is significantly lower than peers such as Oaktree Specialty Lending Corp. with a P/E of 133.65 and Capital Southwest Corp. at 17.11. Additionally, Crescent's price to book value is 0.77, indicating it is trading below its book value, further supporting the undervaluation thesis.
Crescent Capital BDC, Inc. also shows a robust dividend yield of 13.56% and a return on capital employed (ROCE) of 19.10%, which are attractive metrics compared to its peers. The EV to EBITDA ratio of 3.74 is competitive, especially when compared to New Mountain Finance Corp. at 4.10. Despite recent stock performance trailing the S&P 500, with a year-to-date return of -25.81% compared to the S&P's 2.44%, the underlying fundamentals suggest that Crescent Capital BDC, Inc. is positioned well for potential upside.