Oaktree Specialty Lending Corporation (OCSL) Fair Value & Analysis

Financial Services · US · Market cap $1.0B

A solid business, but screening 49% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case ($8.18). The favourable scenario is already priced in.
• Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $10.40 – $15.80 · fair‑value band $4.91 – $8.18 · the $12.96 price screens above the $6.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Oaktree Specialty Lending Corporation (OCSL) currently trades at $12.96, while our model-based Fair Value estimate is $6.55, implying the stock looks roughly 49.5% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Oaktree Specialty Lending Corporation generated revenue of $298M at a net margin of 16.7%. Revenue declined 9.3% year over year. It earns a return on equity of 3.5%. Net debt stands at $1.4B. Fundamentals as of Jul 27, 2026

Our scenario range runs from $4.91 (bear case) to $8.18 (bull case); at $12.96, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 1% below its 52-week high and 25% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at -49%, OCSL screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Dividend Discount ($21.52) versus Multiples ($5.01). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Oaktree Specialty Lending Corporation is a business development company. The fund specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity, and management buyouts in small and …

Full company description

Oaktree Specialty Lending Corporation is a business development company. The fund specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, preferred equity, and management buyouts in small and mid-sized companies. It seeks to invest in education services, business services, retail and consumer, healthcare, manufacturing, food and restaurants, construction and engineering. The firm also seeks investment in media, advertising sectors, software, IT services, pharmaceuticals, biotechnology, real estate management and development, chemicals, machinery, and internet and direct marketing retail sectors. It invests between $5 million to $75 million principally in the form of one-stop, first lien, and second lien debt investments, which may include an equity co-investment component in companies. The firm invest in companies having enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million. The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million. It primarily invests in North America. The fund seeks to be a lead investor in its portfolio companies.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Oaktree Specialty Lending Corporation reported revenue of $300M in FY2025 versus $248M in FY2021, a compound +4.8%/yr. Reported net income was $33.9M in FY2025, compounding −38.5%/yr from FY2021.

OCSL screens 49% overvalued. Compare with Fondul Proprietatea SA →

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

• 3 Reasons OCSL is Risky and 1 Stock to Buy Instead Yahoo Finance · Jul 17, 2026
• Oaktree Specialty Lending Corporation Schedules Third Fiscal Quarter Earnings Conference Call for August 5, 2026 Yahoo Finance · Jul 9, 2026

Peer Group

Asset Management · 973 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Asset Management median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Insider activity: 78/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Asset Management stocks, each showing price versus our Fair Value estimate (as of Jul 27, 2026).

Explore undervalued stocks

More undervalued Financial Services stocks →

Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.