TPG Specialty Lending is a specialty finance company focused on lending to middle-market companies, through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine loans and investments in corporate bonds and equity securities. The company was founded in 1992 and is based in New York, New York.
TSLX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sixth Street Specialty Lending Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sixth Street Specialty Lending Inc ranked in the 58th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 31.67%. As for the metrics that stood out in our discounted cash flow analysis of Sixth Street Specialty Lending Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 4.75; that's higher than 51.68% of US stocks in the Financial Services sector that have positive free cash flow.
The business' balance sheet reveals debt to be 39% of the company's capital (with equity being the remaining amount). Approximately 70.72% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Sixth Street Specialty Lending Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 4.07% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AFL, GBLI, HCAP, UIHC, and AINV can be thought of as valuation peers to TSLX, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Sixth Street Specialty Lending, Inc. (NYSE: TSLX) ("TSLX" or "the Company") announced today that it will release its financial results for the fourth quarter and fiscal year ended December 31, 2020 on Wednesday, February 17, 2021, after the market closes. TSLX invites all interested persons to its webcast / conference call on Thursday, February 18, 2021 at 8:30 a.m. Eastern Time to discuss its fourth quarter and fiscal year ended December 31, 2020 financial results.
TPG Specialty Lending (NYSE:TSLX) was downgraded by equities researchers at ValuEngine from a “sell” rating to a “strong sell” rating in a research note issued to investors on Friday, ValuEngine reports. TSLX has been the topic of a number of other reports. Zacks Investment Research downgraded TPG Specialty Lending from a “buy” rating to a […]
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