Is Runway Growth Finance Corp. overvalued or undervalued?

As of 3 November 2022, the valuation grade for Runway Growth Finance Corp. moved from very expensive to very attractive, indicating a significant shift in its perceived value. The company is currently undervalued, with a P/E ratio of 6, a Price to Book Value of 0.75, and an EV to EBITDA of 3.36. These ratios suggest that the stock is trading at a discount compared to its earnings and assets. In comparison to its peers, Runway Growth Finance Corp. has a notably lower P/E ratio than LendingClub Corp., which stands at 24.75, and a more favorable PEG ratio of 0.11 compared to AdaptHealth Corp.'s 0.00. This positions Runway as an attractive investment opportunity within its industry. Additionally, the company's dividend yield of 7.00% further enhances its appeal to income-focused investors. Despite underperforming against the S&P 500 over the past year, the recent valuation adjustments suggest a potential for recovery and growth.