Is WhiteHorse Finance, Inc. overvalued or undervalued?

As of 5 August 2016, the valuation grade for WhiteHorse Finance, Inc. moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, supported by a P/E ratio of 23, a Price to Book Value of 0.74, and an EV to EBITDA of 4.67. In comparison to its peers, GCM Grosvenor, Inc. has a P/E of 78.97, while Gladstone Investment Corp. shows a much lower P/E of 6.80, highlighting WhiteHorse's relative valuation attractiveness.
Despite its current undervaluation, WhiteHorse Finance has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -8.99% compared to the S&P 500's 12.22%. This trend continues over longer periods, with a 3-year return of -36.34% versus the S&P 500's 70.41%, suggesting that while the stock may be undervalued, it has faced significant challenges in the market.