- Part 1 of this article compares ARCC’s recent quarterly change in NAV, quarterly and trailing twelve-month economic return, NII, and current valuation to 14 BDC peers.
- Part 1 also performs a comparative analysis between each company’s investment portfolio as of 6/30/2020 and 9/30/2020. This includes an updated percentage of investments on non-accrual status.
- Other metrics analyzed include each company’s cumulative realized gain (loss) per share, NII per share, price to annualized NII ratio, and percentage of income attributable to capitalized PIK income.
- As a direct result of the recent market/sector rally, many stocks are now appropriately priced (a bit more caution versus earlier this year). However, I believe ARCC is slightly undervalued.
- I also provide a list of the other BDC stocks I currently believe are undervalued (a buy recommendation), overvalued (a sell recommendation), and appropriately valued (a hold recommendation).
For further details see:
Ares Capital's NAV, Dividend And Valuation Vs. 14 BDC Peers (Post Q3 2020 Earnings - Remains Attractively Valued)