Is Crescent Capital BDC, Inc. overvalued or undervalued?

As of 24 February 2021, the valuation grade for Crescent Capital BDC, Inc. moved from expensive to very attractive, indicating a significant shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 11, a price-to-book value of 0.77, and an EV to EBITDA ratio of 3.74. In comparison to its peer Compass Diversified Holdings, which has a P/E ratio of -8.79, Crescent Capital demonstrates a more favorable valuation profile.
Despite this attractive valuation, the company's stock has underperformed relative to the S&P 500, with a year-to-date return of -18.37% compared to the index's 12.22%. This trend continues over longer periods, with a 3-year return of -11.61% versus 70.41% for the S&P 500, suggesting that while the stock may be undervalued, it has struggled to keep pace with broader market performance.