Carlyle Secured Lending, Inc.

AI-generated fair value estimate for this company.

Method: NAV-based excess-return model + zero-growth dividend discount cross-check: NAV/share $15.61 (6/30/2026); NII/share $0.35/qtr ($1.40 annualized) = ROE 9.0%; cost of equity 10.5% (CAPM: risk-free 4.2% + beta 1.15 x ERP 5.5%); terminal NAV growth 1.5%; justified P/NAV = (ROE-g)/(COE-g) = (9.0%-1.5%)/(10.5%-1.5%) = 0.83x NAV = $12.98; dividend discount zero-growth perpetuity $1.40/10.5% = $13.33; average of the two = $13.15

Reasoning: BDCs are valued on NAV and sustainable dividend yield rather than a cash-flow DCF since nearly all net investment income is distributed; CGBD's 9.0% ROE below its 10.5% cost of equity explains its persistent 0.68x price-to-NAV discount, so an excess-return/NAV-anchored model combined with a dividend discount cross-check better reflects fair value than a standard multiples approach