Is WhiteHorse Finance, Inc. overvalued or undervalued?

As of 5 August 2016, the valuation grade for WhiteHorse Finance, Inc. has moved from risky to very attractive, indicating a significant improvement in its financial standing. The company is currently considered undervalued. Key ratios include a P/E ratio of 23, a Price to Book Value of 0.74, and an EV to EBITDA of 4.67, all of which suggest that the stock is trading at a discount relative to its earnings and asset value.
In comparison to its peers, WhiteHorse Finance's P/E ratio of 24.17 is notably higher than Gladstone Capital Corp. at 6.82 and Gladstone Investment Corp. at 7.92, indicating that while it may appear more expensive, its overall valuation is supported by its attractive dividend yield of 19.81% and a ROCE of 14.88%. Despite recent underperformance against the S&P 500, the current valuation metrics suggest that WhiteHorse Finance presents a compelling investment opportunity in the market.