Sixth Street Specialty Lending, Inc (TSLX) Fair Value & Analysis

Financial Services · US · Market cap $1.6B

A solid business, screening 24% undervalued on our models.

What matters now

• Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
• 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 $10.86 – $22.83 · fair‑value band $17.77 – $29.61 · the $19.10 price screens below the $23.69 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 →

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Analysis

Sixth Street Specialty Lending, Inc (TSLX) currently trades at $19.10, while our model-based Fair Value estimate is $23.69, implying the stock looks roughly 24.0% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Sixth Street Specialty Lending, Inc generated revenue of $426M at a net margin of 25.2%. Revenue declined 19.7% year over year. It earns a return on equity of 6.8%. Net debt stands at $1.7B. Fundamentals as of Jul 27, 2026

Our scenario range runs from $17.77 (bear case) to $29.61 (bull case); at $19.10, the current price sits within 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 17% below its 52-week high and 18% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at 24%, TSLX screens cheaper 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: Earnings-Based ($28.53) versus Growth DCF ($2.09). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Sixth Street Specialty Lending, Inc. (NYSE: TSLX) is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on …

Full company description

Sixth Street Specialty Lending, Inc. (NYSE: TSLX) is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, growth capital, buyout, and refinancing. The fund invests in business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalty related businesses, education, and specialty finance. The fund seeks to finance and lending to middle market companies principally located in the United States. The fund invests in companies with enterprise value between $50 million and $1000 million or more and EBITDA between $10 million and $250 million. The debt transaction size is between $15 million and $350 million. The fund invests across the spectrum of the capital structure and can arrange syndicated transactions of up to $500 million and hold sizeable positions within its credits.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sixth Street Specialty Lending, Inc reported revenue of $360M in FY2025 versus $224M in FY2021, a compound +12.6%/yr. Reported net income was $171M in FY2025, compounding −5.3%/yr from FY2021.

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Earlier news

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

• Sixth Street (TSLX) Expected to Beat Earnings Estimates: What to Know Ahead of Q2 Release Yahoo Finance · Jul 28, 2026
• Sixth Street Specialty Lending, Inc. Schedules Earnings Release and Conference Call to Discuss Its Second Quarter Ended June 30, 2026 Financ Yahoo Finance · Jul 2, 2026
• Sixth Street Specialty Lending (TSLX) Stock Fair Value Moves Lower After Analyst Target Cuts Yahoo Finance · Jun 28, 2026
• 2 Reasons TSLX is Risky and 1 Stock to Buy Instead Yahoo Finance · Jun 25, 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.

Insider activity: 66/100

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.

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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.