Latest Ratios: P/E Ratio 9.4x · EV/EBITDA 14.6x · ROE 10.6%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.6B | $2.1B | $2.0B | $1.8B | $1.4B | $1.8B | $1.4B | $1.4B | $1.2B | $1.2B | $1.1B |
| Enterprise Value | $3.4B | $3.8B | $3.9B | $3.6B | $2.8B | $3.0B | $2.5B | $2.5B | $1.8B | $1.9B | $1.8B |
| P/E Ratio → | 9.44 | 12.00 | 10.49 | 8.28 | 12.90 | 8.38 | 7.83 | 9.18 | 9.73 | 10.65 | 7.98 |
| P/S Ratio | 4.51 | 5.71 | 5.45 | 4.97 | 7.44 | 6.83 | 5.92 | 6.43 | 6.65 | 7.79 | 6.25 |
| P/B Ratio | 1.01 | 1.28 | 1.22 | 1.23 | 1.04 | 1.42 | 1.20 | 1.27 | 1.11 | 1.23 | 1.15 |
| P/FCF | 9.01 | 11.41 | 10.47 | 9.58 | 19.38 | 16.14 | 10.26 | 12.01 | 8.87 | 14.09 | 13.13 |
| P/OCF | 9.01 | 11.41 | 10.47 | 9.58 | 19.38 | 16.14 | 10.26 | 12.01 | 8.87 | 14.09 | 13.13 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.54 | 10.72 | 9.78 | 15.09 | 11.27 | 10.63 | 11.38 | 10.05 | 12.38 | 10.11 |
| EV / EBITDA | 14.58 | 16.46 | 19.97 | 16.16 | 25.38 | 14.02 | 13.61 | 15.84 | 14.61 | 16.50 | 12.71 |
| EV / EBIT | 17.44 | 16.46 | 19.97 | 16.16 | 25.38 | 14.02 | 13.61 | 15.84 | 14.61 | 16.50 | 12.71 |
| EV / FCF | — | 21.06 | 20.60 | 18.85 | 39.31 | 26.65 | 18.40 | 21.24 | 13.40 | 22.40 | 21.24 |
Margins and return-on-capital ratios measuring operating efficiency
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 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.8% | 72.8% | 70.3% | 73.9% | 72.9% | 84.8% | 84.3% | 81.8% | 79.5% | 84.5% | 88.0% |
| Operating Margin | 53.5% | 53.5% | 53.7% | 60.5% | 59.4% | 80.4% | 78.1% | 71.8% | 68.8% | 75.1% | 79.5% |
| Net Profit Margin | 47.3% | 47.3% | 51.9% | 60.0% | 57.7% | 79.5% | 75.7% | 70.1% | 66.9% | 73.2% | 78.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.6% | 10.6% | 12.0% | 15.6% | 8.3% | 17.4% | 15.6% | 14.2% | 11.7% | 11.6% | 15.5% |
| ROA | 4.9% | 4.9% | 5.4% | 7.2% | 4.0% | 8.7% | 7.7% | 7.7% | 6.9% | 6.6% | 8.6% |
| ROIC | 4.2% | 4.2% | 4.3% | 5.5% | 3.2% | 6.8% | 6.1% | 6.1% | 5.5% | 5.2% | 6.7% |
| ROCE | 5.6% | 5.6% | 5.6% | 7.3% | 4.2% | 8.9% | 8.1% | 8.0% | 7.2% | 6.8% | 8.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.08 | 1.08 | 1.18 | 1.19 | 1.07 | 0.93 | 0.96 | 0.98 | 0.57 | 0.73 | 0.71 |
| Debt / EBITDA | 7.55 | 7.55 | 9.84 | 7.95 | 12.96 | 5.54 | 6.04 | 6.91 | 4.97 | 6.15 | 4.89 |
| Net Debt / Equity | — | 1.08 | 1.18 | 1.19 | 1.07 | 0.93 | 0.95 | 0.97 | 0.57 | 0.72 | 0.71 |
| Net Debt / EBITDA | 7.54 | 7.54 | 9.82 | 7.95 | 12.87 | 5.53 | 6.03 | 6.88 | 4.94 | 6.12 | 4.85 |
| Debt / FCF | — | 9.65 | 10.13 | 9.27 | 19.93 | 10.52 | 8.15 | 9.23 | 4.53 | 8.30 | 8.11 |
| Interest Coverage | 2.19 | 2.19 | 1.81 | 2.32 | 2.20 | 5.30 | 4.96 | 3.95 | 3.35 | 4.85 | 6.60 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.11 | 0.11 | 0.38 | 0.34 | 0.60 | 0.10 | 1.04 | 0.99 | 0.67 | 0.99 | 0.73 |
| Quick Ratio | 0.11 | 0.11 | 0.38 | 0.34 | 0.60 | 0.10 | 1.04 | 0.99 | 0.67 | 0.99 | 0.73 |
| Cash Ratio | 0.11 | 0.11 | 0.17 | 0.05 | 0.41 | 0.03 | 0.09 | 0.19 | 0.13 | 0.15 | 0.21 |
| Asset Turnover | — | 0.11 | 0.10 | 0.11 | 0.07 | 0.10 | 0.10 | 0.10 | 0.10 | 0.09 | 0.10 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 10.5% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 99.9% | 99.9% | 79.6% | 61.7% | 125.0% | 40.5% | 73.2% | 63.4% | 80.6% | 84.8% | 58.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.6% | 8.3% | 9.5% | 12.1% | 7.8% | 11.9% | 12.8% | 10.9% | 10.3% | 9.4% | 12.5% |
| FCF Yield | 11.1% | 8.8% | 9.6% | 10.4% | 5.2% | 6.2% | 9.7% | 8.3% | 11.3% | 7.1% | 7.6% |
| Buyback Yield | 0.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 10.5% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $95M | $92M | $85M | $78M | $78M | $67M | $66M | $65M | $60M | $59M |
Portfolio concentration in software
Based on current market data, TSLX trades at a P/B ratio of 0.99, which, according to recent financial filings, suggests investors are pricing in a premium for the manager's historical credit discipline and specialized deal access relative to the broader, more commoditized BDC peer group.
The P/E multiple of 9.33x appears to reflect a market expectation of stable, albeit non-linear, earnings growth driven by the company's specialty lending niche. Investors should monitor whether this premium valuation is sustainable if the current yield environment plateaus or if competitive pressures compress the spreads on new originations.
As reported in quarterly financial statements, TSLX's ROIC has shown significant instability, ranging from 0.8% to 2.1% over the last ten quarters, which indicates that the company's ability to compound returns is heavily dependent on the timing of lumpy fee income and fair value adjustments.
The inconsistent ROIC trend suggests that while the underlying senior secured portfolio provides a baseline return, the marginal efficiency of capital is frequently disrupted by the cyclical nature of amendment and structuring fees. This warrants further investigation into whether the current return profile is sufficient to justify the inherent risks of the specialty credit model.
According to historical data, TSLX maintains an extremely low asset turnover ratio, consistently near 0.03, which, as noted in recent SEC filings, highlights the capital-intensive nature of the BDC model where revenue is generated through interest spreads rather than high-velocity asset utilization.
The DSO metric, which has fluctuated between 21 and 34 days, suggests that the company manages its interest and fee collection cycles with reasonable efficiency. However, the lack of significant improvement in these turnover metrics implies that operational leverage is limited by the structural constraints of the credit investment business.
The P/E ratio is frequently misapplied to TSLX, as reported in financial analysis literature, because it fails to account for the non-cash nature of PIK interest and the volatility of fair value adjustments that distort net income without reflecting the company's actual cash-generating capacity.
Investors should instead focus on Net Investment Income (NII) and the sustainability of the dividend payout relative to cash flow, as the P/E multiple obscures the underlying credit quality and the impact of the incentive fee structure. Relying on P/E may lead to an inaccurate assessment of the company's true earning power in a fluctuating interest rate environment.
Includes 30+ ratios · 15 years · Updated daily
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Quick answers to the most common questions about buying TSLX stock.
Sixth Street Specialty Lending, Inc.'s current P/E ratio is 9.4x. The historical average is 10.1x. This places it at the 42th percentile of its historical range.
Sixth Street Specialty Lending, Inc.'s current EV/EBITDA is 14.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.9x.
Sixth Street Specialty Lending, Inc.'s return on equity (ROE) is 10.6%. The historical average is 11.8%.
Based on historical data, Sixth Street Specialty Lending, Inc. is trading at a P/E of 9.4x. This is at the 42th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sixth Street Specialty Lending, Inc.'s current dividend yield is 10.52% with a payout ratio of 99.9%.
Sixth Street Specialty Lending, Inc. has 72.8% gross margin and 53.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Sixth Street Specialty Lending, Inc.'s Debt/EBITDA ratio is 7.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.