Is SLR Investment Corp. overvalued or undervalued?

As of 24 February 2021, the valuation grade for SLR Investment Corp. moved from risky to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a P/E ratio of 10, which is notably lower than its peers such as Oaktree Specialty Lending Corp. at 133.65 and Capital Southwest Corp. at 17.11. Additionally, SLR Investment Corp. has a Price to Book Value of 0.93 and an impressive ROCE of 29.98%, further supporting its undervaluation status.
In comparison to its peers, SLR Investment Corp. stands out with a low EV to EBITDA ratio of 2.89, while its closest competitor, New Mountain Finance Corp., has a ratio of 4.10. The company's dividend yield is exceptionally high at 972.72%, which may attract income-focused investors. Despite recent underperformance against the S&P 500, with a 1-year return of 0.63% compared to the index's 10.26%, the overall financial metrics suggest that SLR Investment Corp. is a compelling investment opportunity at its current price of 15.95.