Sixth Street Specialty Lending, Inc.

NYSE:TSLX Stock Report

Market Cap: US$2.0b

Sixth Street Specialty Lending Valuation

Is TSLX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TSLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$27.60
Fair Value
22.9% undervalued intrinsic discount
9
Number of Analysts

Below Fair Value: TSLX ($21.27) is trading below our estimate of fair value ($27.6)

Significantly Below Fair Value: TSLX is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TSLX?

Key metric: As TSLX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TSLX. This is calculated by dividing TSLX's market cap by their current earnings.
What is TSLX's PE Ratio?
PE Ratio11.4x
EarningsUS$176.00m
Market CapUS$2.00b

Price to Earnings Ratio vs Peers

How does TSLX's PE Ratio compare to its peers?

Insufficient data to calculate this valuation analysis check
The above table shows the PE ratio for TSLX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Averagen/a
TSLX Sixth Street Specialty Lending
11.4x5.1%US$2.0b

Price-To-Earnings vs Peers: Insufficient data to calculate TSLX's Price-To-Earnings Ratio vs. peers for valuation analysis.

Price to Earnings Ratio vs Industry

How does TSLX's PE Ratio compare vs other companies in the US Capital Markets Industry?

19 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADX Adams Diversified Equity Fund
4.1xn/aUS$2.27b
CET Central Securities
4.6xn/aUS$1.31b
ASA ASA Gold and Precious Metals
2.6xn/aUS$580.95m
MUDS Mudrick Capital Acquisition Corporation II
3.4xn/aUS$401.64m
TSLX 11.4xIndustry Avg. 26.3xNo. of Companies70PE020406080100+
19 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TSLX is good value based on its Price-To-Earnings Ratio (11.4x) compared to the US Capital Markets industry average (26.3x).

Price to Earnings Ratio vs Fair Ratio

What is TSLX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TSLX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio11.2x

Price-To-Earnings vs Fair Ratio: TSLX is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TSLX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$21.27
US$23.06
+8.4%
5.1%US$25.00US$21.00n/a9
May ’26US$20.56
US$23.06
+12.1%
5.1%US$25.00US$21.00n/a9
Apr ’26US$22.43
US$23.40
+4.3%
3.4%US$25.00US$22.00n/a10
Mar ’26US$23.51
US$23.40
-0.5%
3.4%US$25.00US$22.00n/a10
Feb ’26US$22.38
US$22.45
+0.3%
2.9%US$23.00US$21.00n/a11
Jan ’26US$21.30
US$22.27
+4.6%
3.4%US$23.00US$21.00n/a11
Dec ’25US$21.48
US$22.27
+3.7%
3.4%US$23.00US$21.00n/a11
Nov ’25US$20.26
US$22.65
+11.8%
1.7%US$23.00US$22.00n/a10
Oct ’25US$20.28
US$22.65
+11.7%
1.7%US$23.00US$22.00n/a10
Sep ’25US$21.24
US$22.65
+6.6%
1.7%US$23.00US$22.00n/a10
Aug ’25US$20.84
US$22.65
+8.7%
1.7%US$23.00US$22.00n/a10
Jul ’25US$21.40
US$22.64
+5.8%
1.7%US$23.00US$22.00n/a11
Jun ’25US$22.01
US$22.64
+2.8%
1.7%US$23.00US$22.00n/a11
May ’25US$21.78
US$22.68
+4.1%
1.9%US$23.50US$22.00US$20.5611
Apr ’25US$21.16
US$22.68
+7.2%
1.9%US$23.50US$22.00US$22.4311
Mar ’25US$21.07
US$22.68
+7.6%
1.9%US$23.50US$22.00US$23.5111
Feb ’25US$21.45
US$22.14
+3.2%
1.7%US$23.00US$21.50US$22.3811
Jan ’25US$21.60
US$21.91
+1.4%
2.1%US$23.00US$21.00US$21.3011
Dec ’24US$21.00
US$21.91
+4.3%
2.1%US$23.00US$21.00US$21.4811
Nov ’24US$19.75
US$21.50
+8.9%
3.3%US$22.00US$20.00US$20.2611
Oct ’24US$20.44
US$21.50
+5.2%
3.3%US$22.00US$20.00US$20.2811
Sep ’24US$20.27
US$21.50
+6.1%
3.3%US$22.00US$20.00US$21.2411
Aug ’24US$20.03
US$21.00
+4.8%
3.5%US$22.00US$20.00US$20.8411
Jul ’24US$18.69
US$20.75
+11.0%
3.9%US$22.00US$19.25US$21.4011
Jun ’24US$18.65
US$20.73
+11.1%
4.1%US$22.00US$19.25US$22.0110
May ’24US$18.09
US$20.98
+15.9%
4.6%US$22.00US$19.25US$21.7810
AnalystConsensusTarget
Consensus Narrative from 9 Analysts
US$23.06
Fair Value
7.7% undervalued intrinsic discount
9
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/11 13:18
End of Day Share Price 2025/05/09 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Sixth Street Specialty Lending, Inc. is covered by 15 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mark DeVriesBarclays
Derek HewettBofA Global Research
Derek HewettBofA Global Research