Is SLR Investment Corp. overvalued or undervalued?
As of February 24, 2021, SLR Investment Corp. is considered undervalued with a P/E ratio of 10, a price-to-book value of 0.93, and a high dividend yield of 972.72%, despite a recent stock decline of 3.71%, especially when compared to peers like TPG, Inc. with a P/E of 1024.14 and Sixth Street Specialty Lending, Inc. with a P/E of 12.44.
As of 24 February 2021, SLR Investment Corp. moved from a risky to a very attractive valuation grade. The company appears undervalued, with a P/E ratio of 10, a price-to-book value of 0.93, and an EV to EBIT of 2.89. In comparison to peers, TPG, Inc. has an expensive P/E of 1024.14, while Sixth Street Specialty Lending, Inc. has a P/E of 12.44, indicating that SLR Investment Corp. is trading at a significantly lower valuation than its peers.Despite recent stock performance showing a decline of 3.71% over the past week compared to a 1.05% gain in the S&P 500, the company's strong fundamentals, including a high dividend yield of 972.72% and a ROCE of 29.98%, support the notion that it is undervalued relative to its market position.
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