TSLX Valuation

Sixth Street Specialty Lending Inc

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24.150

+0.09(0.374%)1D

Overview
Forecast
Valuation
Earnings

TSLX Relative Valuation

TSLX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TSLX is overvalued; if below, it's undervalued.

Historical Valuation

Sixth Street Specialty Lending Inc (TSLX) is now in the Fair zone, suggesting that its current forward PE ratio of 10.52 is considered Fairly compared with the five-year average of 9.66. The fair price of Sixth Street Specialty Lending Inc (TSLX) is between 22.58 to 27.05 according to relative valuation methord.

Relative Value

Fair Zone

22.58-27.05

Current Price：24.07

Fair

10.51

Trailing

Forward

0.00

EV/EBITDA

Sixth Street Specialty Lending Inc. (TSLX) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

19.02

EV/EBIT

Sixth Street Specialty Lending Inc. (TSLX) has a current EV/EBIT of 19.02. The 5-year average EV/EBIT is 17.61. The thresholds are as follows: Strongly Undervalued below 14.57, Undervalued between 14.57 and 16.09, Fairly Valued between 19.12 and 16.09, Overvalued between 19.12 and 20.64, and Strongly Overvalued above 20.64. The current Forward EV/EBIT of 19.02 falls within the Historic Trend Line -Fairly Valued range.

4.71

Sixth Street Specialty Lending Inc. (TSLX) has a current PS of 4.71. The 5-year average PS is 4.63. The thresholds are as follows: Strongly Undervalued below 2.86, Undervalued between 2.86 and 3.74, Fairly Valued between 5.51 and 3.74, Overvalued between 5.51 and 6.40, and Strongly Overvalued above 6.40. The current Forward PS of 4.71 falls within the Historic Trend Line -Fairly Valued range.

23.63

P/OCF

Sixth Street Specialty Lending Inc. (TSLX) has a current P/OCF of 23.63. The 5-year average P/OCF is 5.81. The thresholds are as follows: Strongly Undervalued below -44.09, Undervalued between -44.09 and -19.14, Fairly Valued between 30.76 and -19.14, Overvalued between 30.76 and 55.71, and Strongly Overvalued above 55.71. The current Forward P/OCF of 23.63 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Sixth Street Specialty Lending Inc. (TSLX) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Sixth Street Specialty Lending Inc (TSLX) has a current Price-to-Book (P/B) ratio of 1.40. Compared to its 3-year average P/B ratio of 1.21 , the current P/B ratio is approximately 16.03% higher. Relative to its 5-year average P/B ratio of 1.24, the current P/B ratio is about 13.42% higher. Sixth Street Specialty Lending Inc (TSLX) has a Forward Free Cash Flow (FCF) yield of approximately -10.08%. Compared to its 3-year average FCF yield of -13.86%, the current FCF yield is approximately -27.28% lower. Relative to its 5-year average FCF yield of -7.59% , the current FCF yield is about 32.74% lower.

1.40

P/B

Median3y

1.21

Median5y

1.24

-10.09

FCF Yield

Median3y

-13.86

Median5y

-7.59

Competitors Valuation Multiple

The average P/S ratio for TSLX's competitors is 4.26, providing a benchmark for relative valuation. Sixth Street Specialty Lending Inc Corp (TSLX) exhibits a P/S ratio of 4.71, which is 10.75% above the industry average. Given its robust revenue growth of 7.98%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

TSLX.N

Sixth Street Specialty Lending Inc

Black Stone Minerals LP

Kimbell Royalty Partners LP

Goldman Sachs BDC Inc

2.83

-771.67%

1.30B

Performance Decomposition

Market capitalization of TSLX increased by 13.70% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 41.55 to 47.90.

The secondary factor is the Revenue Growth, contributed 7.98%to the performance.

Overall, the performance of TSLX in the past 1 year is driven by Margin Expansion. Which is more sustainable.

7.98%

114.07M → 123.18M

Revenue Growth

15.28%

41.55 → 47.90

Margin Expansion

-9.56%

10.69 → 9.67

P/E Change

13.70%