Is Franklin BSP Capital Corp. overvalued or undervalued?

As of 19 March 2025, the valuation grade for Franklin BSP Capital Corp. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 16, a Price to Book Value of 0.70, and an EV to EBIT of 5.32, which suggest that the stock is trading at a discount compared to its earnings potential.
In comparison to peers, Franklin BSP Capital Corp. has a lower P/E ratio of 14.19 and an EV to EBITDA of 4.71, highlighting its relative attractiveness in the market. Notably, while the company has experienced a 1-week return of 13.13%, outperforming the S&P 500's slight decline, its longer-term performance has lagged behind the index over the past year. Overall, these factors reinforce the view that Franklin BSP Capital Corp. is undervalued in the current market environment.