Is New Mountain Finance Corp. overvalued or undervalued?

As of 4 November 2020, New Mountain Finance Corp. moved from risky to very attractive in its valuation grade. The company is currently undervalued, supported by a P/E ratio of 11, a Price to Book Value of 0.87, and an EV to EBIT of 4.33. In comparison to its peers, Golub Capital BDC, Inc. has a P/E of 10.50, while Victory Capital Holdings, Inc. has a P/E of 15.76, indicating that New Mountain Finance Corp. is trading at a lower valuation relative to some of its competitors.
Despite its attractive valuation, New Mountain Finance Corp. has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -12.61% compared to the S&P 500's 12.22%. This performance highlights the potential for value realization as the market adjusts to its favorable valuation metrics.