Is Palmer Square Capital BDC Inc. overvalued or undervalued?

As of 27 February 2025, the valuation grade for Palmer Square Capital BDC Inc. has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 27, a Price to Book Value of 0.87, and an EV to EBIT of 5.25, which suggest that the stock is trading below its intrinsic value compared to its earnings potential.
In comparison to its peers, Palmer Square Capital BDC Inc. has a P/E ratio of 28.63 and an EV to EBITDA of 5.52, indicating that while it is slightly below the average valuation of its peers, it remains competitively positioned. The company's recent performance has shown a 1-week return of 3.29%, outperforming the S&P 500, which saw a slight decline of 0.13%. Overall, these factors reinforce the conclusion that Palmer Square Capital BDC Inc. is undervalued in the current market environment.