Morgan Stanley Direct Lending Fund (MSDL) Financial Ratios
6 years of historical data (2020–2025) · Financial Services · Financial - Conglomerates
EV/EBITDA
↓
12.68
↓-17% vs avg
5yr avg: 15.26
30Y Low13.3·High17.2
P/FCF
↑
8.40
↓-10% vs avg
5yr avg: 9.34
30Y Low9.2·High9.5
P/B Ratio
↓
0.75
↓-18% vs avg
5yr avg: 0.91
30Y Low0.8·High1.0
ROE
↓
6.8%
↑-30% vs avg
5yr avg: 9.7%
30Y Low4%·High15%
Debt/EBITDA
↓
8.08
↓-42% vs avg
5yr avg: 13.95
30Y Low6.4·High31.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MSDL Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Morgan Stanley Direct Lending Fund trades at 10.7x earnings, 5% above its 5-year average of 10.1x, sitting at the 50th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a discount of 22%. On a free-cash-flow basis, the stock trades at 8.4x P/FCF, 10% below the 5-year average of 9.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Market Cap | $1.3B | $1.4B | $1.8B | — | — | — | — |
| Enterprise Value | $3.3B | $3.4B | $3.7B | — | — | — | — |
| P/E Ratio → | 10.69 | 11.77 | 8.50 | — | — | — | — |
| P/S Ratio | 3.28 | 3.72 | 5.55 | — | — | — | — |
| P/B Ratio | 0.75 | 0.82 | 1.00 | — | — | — | — |
| P/FCF | 8.40 | 9.53 | 9.15 | — | — | — | — |
| P/OCF | 8.40 | 9.53 | 9.15 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
MSDL EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Morgan Stanley Direct Lending Fund's enterprise value stands at 12.7x EBITDA, 17% below its 5-year average of 15.3x. The Financial Services sector median is 11.4x, placing the stock at a 11% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.90 | 11.27 | — | — | — | — |
| EV / EBITDA | 12.68 | 13.34 | 17.19 | — | — | — | — |
| EV / EBIT | 12.68 | 13.34 | 17.19 | — | — | — | — |
| EV / FCF | — | 22.82 | 18.60 | — | — | — | — |
MSDL Profitability
Margins and return-on-capital ratios measuring operating efficiency
Morgan Stanley Direct Lending Fund earns an operating margin of 66.7%, significantly above the Financial Services sector average of 20.3%. Operating margins have compressed from 70.9% to 66.7% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 6.8% is modest, trailing the sector median of 9.0%. ROIC of 5.1% represents adequate returns on invested capital versus a sector median of 5.5%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 81.0% | 81.0% | 63.0% | 65.6% | 33.0% | 78.7% | 84.1% |
| Operating Margin | 66.7% | 66.7% | 65.6% | 70.9% | 48.8% | 84.5% | 78.0% |
| Net Profit Margin | 31.5% | 31.5% | 64.8% | 70.4% | 48.4% | 84.4% | 78.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| ROE | 6.8% | 6.8% | 12.1% | 14.8% | 3.8% | 11.2% | 6.1% |
| ROA | 3.1% | 3.1% | 6.0% | 7.3% | 1.8% | 5.3% | 2.8% |
| ROIC | 5.1% | 5.1% | 4.6% | 5.7% | 1.4% | 4.1% | — |
| ROCE | 6.6% | 6.6% | 6.2% | 7.5% | 1.8% | 5.4% | 2.8% |
MSDL Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Morgan Stanley Direct Lending Fund carries a Debt/EBITDA ratio of 8.1x, which is highly leveraged (90% above the sector average of 4.3x). Net debt stands at $2.0B ($2.1B total debt minus $81M cash). Interest coverage of just 1.9x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.19 | 1.19 | 1.07 | 0.87 | 1.09 | 1.05 | 1.11 |
| Debt / EBITDA | 8.08 | 8.08 | 9.05 | 6.43 | 31.17 | 15.00 | 18.25 |
| Net Debt / Equity | — | 1.15 | 1.03 | 0.83 | 1.03 | 0.99 | 1.07 |
| Net Debt / EBITDA | 7.77 | 7.77 | 8.73 | 6.13 | 29.51 | 14.11 | 17.63 |
| Debt / FCF | — | 13.29 | 9.45 | 7.68 | 11.86 | 17.37 | 25.95 |
| Interest Coverage | 1.90 | 1.90 | 1.77 | 2.06 | 0.73 | 3.97 | 4.91 |
MSDL Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio has declined from 1.44x to 1.36x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Current Ratio | — | — | 1.36 | 1.44 | 2.09 | 2.85 | 1.32 |
| Quick Ratio | — | — | 1.36 | 1.44 | 2.09 | 2.85 | 1.32 |
| Cash Ratio | — | — | 0.94 | 1.01 | 1.62 | 2.25 | 1.09 |
| Asset Turnover | — | 0.10 | 0.09 | 0.10 | 0.03 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — |
MSDL Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Morgan Stanley Direct Lending Fund returns 17.4% to shareholders annually — split between a 14.1% dividend yield and 3.3% buyback yield. The payout ratio exceeds 100% at 150.7%, meaning the company is paying out more than it earns — this level is unsustainable long-term without earnings recovery. The earnings yield of 9.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Dividend Yield | 14.1% | — | — | — | — | — | — |
| Payout Ratio | 150.7% | 150.7% | — | 47.8% | 176.6% | 45.9% | 20.4% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.4% | 8.5% | 11.8% | — | — | — | — |
| FCF Yield | 11.9% | 10.5% | 10.9% | — | — | — | — |
| Buyback Yield | 3.3% | — | — | — | — | — | — |
| Total Shareholder Yield | 17.4% | — | — | — | — | — | — |
| Shares Outstanding | — | $87M | $89M | $88M | $88M | $88M | $88M |
Peer Comparison
Compare MSDL with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MSDLYou | $1B | 10.7 | 12.7 | 8.4 | 81.0% | 66.7% | 6.8% | 5.1% | 8.1 |
 ARCC | $13B | 9.6 | 12.7 | 11.2 | 75.7% | 69.7% | 9.4% | 5.7% | 7.3 |
 FSCO | $979M | 6.4 | 5.6 | 1.9 | 79.3% | 74.5% | 10.5% | 6.4% | 1.9 |
 OBDC | $5B | 8.7 | 11.8 | 3.1 | 75.3% | 73.2% | 9.4% | 6.1% | 7.5 |
 GBDC | $3B | 8.7 | 11.8 | — | 81.5% | 78.9% | 9.4% | 5.9% | 7.1 |
 TPVG | $193M | 3.9 | 8.5 | — | 83.5% | 77.9% | 14.1% | 7.2% | 6.2 |
 CGBD | $746M | 10.6 | 12.7 | — | 70.9% | 86.2% | 6.8% | 5.6% | 8.7 |
 FSK | $3B | 257.8 | 13.6 | 4.8 | 69.6% | 49.5% | 0.2% | 3.2% | 10.1 |
 HTGC | $3B | 8.2 | 13.9 | — | 87.2% | 66.7% | 16.2% | 6.6% | 6.3 |
 SLRC | $669M | 7.2 | 11.0 | — | 73.3% | 72.9% | 9.3% | 5.8% | 7.0 |
 PFLT | $719M | 10.1 | 35.2 | 7.6 | 45.6% | 39.4% | 6.8% | 2.1% | 26.3 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 6 years · Updated daily
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MSDL — Frequently Asked Questions
Quick answers to the most common questions about buying MSDL stock.
What is Morgan Stanley Direct Lending Fund's P/E ratio?
Morgan Stanley Direct Lending Fund's current P/E ratio is 10.7x. The historical average is 10.1x. This places it at the 50th percentile of its historical range.
What is Morgan Stanley Direct Lending Fund's EV/EBITDA?
Morgan Stanley Direct Lending Fund's current EV/EBITDA is 12.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.3x.
What is Morgan Stanley Direct Lending Fund's ROE?
Morgan Stanley Direct Lending Fund's return on equity (ROE) is 6.8%. The historical average is 9.1%.
Is MSDL stock overvalued?
Based on historical data, Morgan Stanley Direct Lending Fund is trading at a P/E of 10.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Morgan Stanley Direct Lending Fund's dividend yield?
Morgan Stanley Direct Lending Fund's current dividend yield is 14.10% with a payout ratio of 150.7%.
What are Morgan Stanley Direct Lending Fund's profit margins?
Morgan Stanley Direct Lending Fund has 81.0% gross margin and 66.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Morgan Stanley Direct Lending Fund have?
Morgan Stanley Direct Lending Fund's Debt/EBITDA ratio is 8.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.