Sixth Street Specialty Lending, Inc. (TSLX) 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

+301.2%

$73.38

vs $18.29 price

Levered DCF

$50.47

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.73

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	12×	10.49×	8.28×	12.9×	7.98×	7.83×	9.18×	9.73×
P/B	1.28×	1.22×	1.23×	1.04×	1.32×	1.2×	1.27×	1.09×
P/S	5.71×	5.45×	4.97×	7.44×	6.34×	5.92×	6.43×	6.51×
EV / EBITDA	16.46×	19.97×	16.16×	25.38×	13.42×	13.61×	15.84×	14.4×
Gross margin	72.8%	70.3%	73.9%	72.9%	84.8%	84.3%	81.8%	79.5%
Operating margin	53.5%	53.7%	60.5%	59.4%	80.4%	78.1%	71.8%	68.8%
Net margin	47.3%	51.9%	60.0%	57.7%	79.5%	75.7%	70.1%	66.9%
Current ratio	0.11×	0.38×	0.34×	0.6×	0.1×	1.04×	0.99×	0.67×
Debt / equity	1.08×	1.18×	1.19×	1.07×	0.93×	0.96×	0.98×	0.57×
Interest coverage	1.83×	1.81×	2.32×	2.2×	5.3×	4.96×	3.95×	3.35×
Dividend yield	8.3%	8.6%	8.5%	10.4%	13.1%	9.4%	6.9%	8.3%
Payout ratio	99.9%	90.4%	70.5%	133.9%	104.8%	73.2%	63.4%	80.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.6%	11.6%	14.8%	8.1%	16.6%	15.3%	13.8%	11.2%
Return on invested capital	5.5%	5.3%	6.7%	3.8%	8.5%	7.7%	6.9%	7.0%
Return on assets	5.0%	5.2%	6.6%	3.8%	8.3%	7.6%	6.8%	6.9%
Free cash flow yield	8.8%	9.6%	10.4%	5.2%	6.7%	9.7%	8.3%	11.5%
Earnings yield	8.3%	9.5%	12.1%	7.8%	12.5%	12.8%	10.9%	10.3%
Enterprise value	$3.8B	$3.9B	$3.6B	$2.8B	$2.9B	$2.5B	$2.5B	$1.8B
Net debt / EBITDA	7.54×	9.82×	7.95×	12.87×	5.53×	6.03×	6.88×	4.94×
Cash conversion cycle (days)	0	0	0	0	-279	-260	-215	-236