Is Silver Spike Investment Corp. overvalued or undervalued?

As of 7 November 2024, the valuation grade for Silver Spike Investment Corp. moved from fair to very attractive, indicating a favorable shift in its valuation outlook. The company appears undervalued based on its current metrics, with a P/E ratio of 14, a Price to Book Value of 0.78, and an EV to EBITDA of 13.11. In comparison to peers, Silver Spike's P/E ratio is significantly lower than that of Blackrock TCP Capital Corp. at -51.75 and Permianville Royalty Trust at 21.21, suggesting it is trading at a discount relative to some competitors.
Despite the attractive valuation, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -8.72% compared to the index's 12.22%. This underperformance over the past year, where Silver Spike returned -5.26% versus the S&P 500's 17.14%, highlights potential market concerns despite its appealing valuation metrics.