Summary
- Part 1 of this article compares ARCC’s recent quarterly change in NAV, quarterly and trailing 24-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 3/31/2022 and 6/30/2022. This includes an updated percentage of investments on non-accrual status.
- 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).
- 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 sell-off, many BDC stocks are now appropriately valued or undervalued. I believe ARCC is currently undervalued.
For further details see:
Ares Capital's NAV, Valuation, And Dividend Vs. 14 BDC Peers - Part 1 (Includes Recommendation For All Covered Peers As Of 9/16/2022)