Is Main Street Capital Corp. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Main Street Capital Corp. moved from attractive to very attractive, indicating a stronger outlook for the company. The stock appears to be undervalued, particularly when considering its P/E ratio of 10, which is significantly lower than peers like Blue Owl Capital, Inc. with a P/E of 140.14, and Stifel Financial Corp. at 18.08. Additionally, the company boasts a robust ROCE of 24.60% and a PEG ratio of 1.07, suggesting that it is generating good returns relative to its growth expectations.
In comparison to its peers, Main Street Capital Corp. stands out with an EV to EBITDA of 7.45, which is more favorable than Blue Owl Capital's 34.23. The company's strong dividend yield of 503.18% further enhances its attractiveness. Over the past year, Main Street Capital Corp. has returned 31.81%, outperforming the S&P 500's 17.14%, reinforcing the notion that it is a compelling investment opportunity.