Is Franklin BSP Capital Corp. overvalued or undervalued?

As of 19 March 2025, the valuation grade for Franklin BSP Capital Corp. moved from expensive to very attractive, indicating a significant shift in its perceived value. The company appears undervalued, particularly when considering its P/E ratio of 16, which is lower than the peer average of 17.05, and a price-to-book value of 0.70, suggesting that the stock is trading below its intrinsic value. Additionally, the EV to EBITDA ratio stands at 5.32, aligning closely with industry standards, which further supports the undervaluation thesis.
In comparison to its peers, Franklin BSP Capital Corp. is positioned favorably with a lower P/E ratio than the average, while its EV to EBITDA ratio is comparable, indicating it is not overvalued relative to its industry. Notably, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -11.35% compared to the S&P 500's 12.22%, reinforcing the notion that the stock may be undervalued given its current price dynamics.