Is Nuveen Churchill Direct Lending Corp. overvalued or undervalued?

As of 27 February 2025, the valuation grade for Nuveen Churchill Direct Lending Corp. moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued with a P/E ratio of 8, a Price to Book Value of 0.88, and an EV to EBITDA ratio of 3.76, all of which suggest that the stock is trading at a discount compared to its earnings and assets.
In comparison to its peer, which has a P/E ratio of approximately 8.09 and an EV to EBITDA of 4.08, Nuveen Churchill Direct Lending Corp. shows a more favorable valuation profile. The company's ROCE stands at 23.02%, indicating strong operational efficiency. Despite this attractive valuation, the stock has underperformed relative to the S&P 500, with a year-to-date return of -10.31% compared to the index's 12.22%.