Is Golub Capital BDC, Inc. overvalued or undervalued?

As of 30 November 2020, the valuation grade for Golub Capital BDC, Inc. moved from risky to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, particularly when considering its P/E ratio of 14, which is substantially lower than the peer average, such as Janus Henderson Group Plc at 17.06 and Affiliated Managers Group, Inc. at 24.16. Additionally, Golub's EV to EBITDA ratio of 6.68 is competitive, especially compared to Hamilton Lane, Inc. at 24.10, reinforcing its attractive valuation.
With a Price to Book Value of 1.00 and a dividend yield of 5.94%, Golub Capital BDC, Inc. presents a compelling investment opportunity within the Capital Markets sector. Despite recent underperformance, with a year-to-date return of -6.33% compared to the S&P 500's 12.22%, the long-term outlook remains positive, as evidenced by its 3-year return of 4.87% versus the S&P 500's 70.41%.