Oaktree Specialty Lending Corporation (OCSL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+192.0%

$36.23

vs $12.41 price

Levered DCF

$7.94

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.27

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	33.46×	22.65×	12.34×	37.5×	4.82×	17.49×	5.78×	14.91×
P/B	0.77×	0.88×	0.96×	0.88×	0.87×	0.75×	0.78×	0.82×
P/S	3.75×	7.04×	6.13×	12.7×	4.1×	8.68×	4.58×	7.53×
EV / EBITDA	16.76×	49.94×	24.49×	72.14×	9.9×	36.11×	9.34×	27.95×
Gross margin	87.2%	30.9%	52.9%	45.5%	89.1%	66.6%	79.7%	61.6%
Operating margin	50.4%	31.0%	50.3%	38.2%	86.4%	47.6%	79.7%	50.9%
Net margin	11.3%	31.1%	49.5%	34.0%	85.1%	49.9%	79.1%	50.3%
Current ratio	11.2×	9.24×	18.56×	16.61×	13.76×	35.6×	14.71×	15.38×
Debt / equity	1.01×	1.1×	1.06×	1.04×	0.97×	0.78×	0.51×	0.74×
Interest coverage	1.3×	0.45×	1.07×	0.7×	7.89×	1.42×	3.92×	1.33×
Dividend yield	13.2%	13.5%	12.4%	10.5%	7.0%	7.8%	7.2%	7.8%
Payout ratio	436.9%	305.4%	153.5%	394.4%	33.7%	135.4%	41.4%	117.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	2.3%	3.9%	7.7%	2.3%	18.1%	4.3%	13.6%	5.4%
Return on invested capital	4.9%	1.8%	3.7%	1.1%	9.0%	2.3%	8.5%	3.0%
Return on assets	1.1%	1.8%	3.6%	1.1%	9.0%	2.4%	8.5%	3.0%
Free cash flow yield	12.7%	1.5%	15.8%	2.0%	-20.1%	-22.4%	29.6%	7.6%
Earnings yield	3.0%	4.4%	8.1%	2.7%	20.7%	5.7%	17.3%	6.7%
Enterprise value	$2.5B	$2.9B	$2.9B	$2.4B	$2.4B	$1.4B	$1.2B	$1.3B
Net debt / EBITDA	9.32×	27.25×	12.3×	38.88×	5.15×	17.89×	3.6×	13.17×
Cash conversion cycle (days)	-47	122	195	398	-11	65	16	116