Is Monroe Capital Corp. overvalued or undervalued?

As of 9 August 2023, the valuation grade for Monroe Capital Corp. has moved from risky to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 20, a Price to Book Value of 0.75, and an impressive PEG Ratio of 0.01, which suggests strong growth potential relative to its price.
In comparison to its peers, Monroe Capital Corp. stands out with a lower P/E ratio than GCM Grosvenor, Inc. at 78.97 and Bridge Investment Group Holdings, Inc. with a negative P/E, while Stellus Capital Investment Corp. and Saratoga Investment Corp. have P/E ratios of 10.86 and 9.82, respectively. Despite recent underperformance with a year-to-date return of -10.24% compared to the S&P 500's 12.22%, the long-term outlook remains positive, as evidenced by a 5-year return of 9.63%, which, while modest, is still a stark contrast to the S&P 500's 96.61% over the same period.