Sixth Street Specialty Lending Inc (TSLX) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Sixth Street Specialty Lending Inc $23.91, price $18.25, upside +31.0%, quality 62 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $10.61 – $22.31 · fair‑value band $14.49 – $42.85 · the $18.25 price screens below the $23.91 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Sixth Street Specialty Lending, Inc. (NYSE: TSLX) is a business development company.
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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.
Stock analysis
Sixth Street Specialty Lending Inc (TSLX) currently trades at $18.25, while our model-based Fair Value estimate is $23.91, implying the stock looks roughly 23.7% undervalued today.
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Valuation
Bull case: the Earnings-Based group reads highest at a median of $28.44 per share, and 7 of the 10 models we run sit above the $18.25 price.
Bear case: the Growth DCF group reads lowest at $4.60, and 3 of the 10 models stay below the price. Evidence for this calculation is high.
Scenario range: $14.49 (bear) to $42.85 (bull), the price of $18.25 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 62/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
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.
Key figures
Market cap $1.7B · P/E ratio 15.9 · P/S ratio 7.51 · EPS (TTM) $1.15 · Dividend yield 10.9% · Net margin 47.3% · Return on equity 6.8% · Return on assets (EBIT) 6.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (medium confidence).
What moves the price
The share trades about 13% below its 52-week high and 15% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −4% fair-value upside, at 31%, TSLX screens cheaper than that median.
Fair Value models
Bear $14.49Fair Value $23.91Bull $42.85
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.92/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+0.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+24.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.7%
Start year 2020 (pandemic). Over 10 years: +15.6% a year
Revenue growth 14 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+36.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+1.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−9.4%
Dividend (yield on the price)10.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−7% vs 1%, slowing
Profit margin 2019 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.92% → 54%
Start year 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+9.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +6.5% a year for the price and +2.5% for the forecasts.
Compare Sixth Street Specialty Lending Inc with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Asset Management · 659 stocks
Beats the industry median on 7/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score63 · Above median
Fair Value upside+30% · Above median
Profitability
Return on equity (TTM)6% · Above median
Return on assets6% · Above median
Net margin (TTM)22% · Below median
Operating margin (TTM)74% · Above median
Growth and dividend
Revenue growth−15% · Bottom 25%
Dividend yield (TTM)10.9% · Top 25%
Balance sheet
Debt / equity0.90× · Highest 25%
Valuation Multiplesvs Asset Management median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Sixth Street Specialty Lending Inc Fair Value". https://www.fairvalue-calculator.com/stock/TSLX
Frequently asked questions
Is Sixth Street Specialty Lending Inc (TSLX) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $23.91 versus a price of $18.25, about +31% upside (undervalued).
What is the fair value of TSLX?
Our model-based fair value for Sixth Street Specialty Lending Inc is $23.91 (as of Sep 23, 2026), built from audited fundamentals. The current price: $18.25.
What is the quality score of TSLX?
Sixth Street Specialty Lending Inc has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Sixth Street Specialty Lending Inc (TSLX)?
Our model-based price target is the fair value of $23.91 (as of Sep 23, 2026) from 10 valuation models. Cautious scenario $14.49, optimistic scenario $42.85. It is a calculation from audited fundamentals, not an analyst target.
What is the Sixth Street Specialty Lending Inc stock forecast for 2026?
Our models put fair value at $23.91, about +31% upside versus a price of $18.25 (undervalued). Cautious scenario $14.49, optimistic scenario $42.85. The calculation is refreshed regularly with new filings.
What is the revenue of Sixth Street Specialty Lending Inc (TSLX)?
Sixth Street Specialty Lending Inc reported trailing-twelve-month revenue of about $426M (latest available figure, as of Sep 23, 2026).
Does Sixth Street Specialty Lending Inc pay a dividend?
Sixth Street Specialty Lending Inc currently shows a dividend yield of about 10.90% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Sixth Street Specialty Lending Inc (TSLX)?
For today's price to be fair in a discounted-cash-flow model, Sixth Street Specialty Lending Inc would have to grow free cash flow by +9.1 % per year for five years (discount rate 10.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.7 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of TSLX use?
Our models discount Sixth Street Specialty Lending Inc at 10.2 %: a base by market capitalisation (small), damped by beta 0.64, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Sixth Street Specialty Lending Inc that is +9.1 % per year a year over ten years, using the same discount rate (10.2 %) and the same formula as our fair value.
How much growth has Sixth Street Specialty Lending Inc (TSLX) delivered so far?
Over the past 5 years revenue at Sixth Street Specialty Lending Inc grew +12.7 % a year. The price currently implies +9.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Sixth Street Specialty Lending Inc (TSLX) growing?
The median revenue growth in the sector is +8.4 % a year. That is the yardstick for the growth priced into Sixth Street Specialty Lending Inc (+9.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Sixth Street Specialty Lending Inc (TSLX)?
The free-cash-flow yield on the price is 10.40 %: that much free cash flow Sixth Street Specialty Lending Inc produces per unit of market value. When it exceeds the discount rate of our models (10.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Sixth Street Specialty Lending Inc (TSLX)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Sixth Street Specialty Lending Inc it is $23.91 per share (as of Sep 23, 2026), against a price of $18.25. It is the blended result of 10 valuation models (cash flow, earnings, asset, dividend).
Is Sixth Street Specialty Lending Inc stock overvalued or undervalued in 2026?
As of Sep 23, 2026, TSLX trades below its calculated fair value: price $18.25, fair value $23.91, a gap of about +31% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TSLX?
No. The price is what the market pays today ($18.25); the fair value is what the company's own numbers justify ($23.91). For Sixth Street Specialty Lending Inc the two are $5.66 per share apart. That gap is exactly why we show both numbers side by side.
How much is Sixth Street Specialty Lending Inc worth?
The market values Sixth Street Specialty Lending Inc at about $1.7B (market capitalisation, as of Sep 23, 2026). Per share that is $18.25; our models calculate a fair value of $23.91 per share.
What do the bullish and bearish scenarios say about TSLX?
Our models span a range for Sixth Street Specialty Lending Inc: cautious scenario $14.49, base $23.91, optimistic $42.85 per share (as of Sep 23, 2026, price $18.25). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TSLX?
Sixth Street Specialty Lending Inc trades at a price-to-earnings ratio of 15.9 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $23.91 is built from several models across several years. Other multiples: PEG 1.3, P/B 1.1, P/S 4.3, EV/EBITDA 13.8.
What is the PEG ratio of TSLX?
The PEG ratio of Sixth Street Specialty Lending Inc is 1.28 (P/E divided by earnings growth, as of Sep 23, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Sixth Street Specialty Lending Inc (TSLX)?
Balance-sheet figures for Sixth Street Specialty Lending Inc (as of Sep 23, 2026): return on equity 5.6%, debt of 0.90 per unit of equity. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
How far is TSLX from its 52-week high?
Sixth Street Specialty Lending Inc trades at $18.25, about 13% below its 52-week high of $21.05 and 15% above the low of $15.83 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $23.91 is for.
Which stocks are comparable to Sixth Street Specialty Lending Inc?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Corporation, KKR & Co, Apollo Global Management, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Sixth Street Specialty Lending Inc stock attractive at the current price?
The data as of Sep 23, 2026: price $18.25, calculated fair value $23.91 (+31%), Quality Score 62/100, from 10 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TSLX calculated?
We run Sixth Street Specialty Lending Inc through 10 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $23.91, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Sixth Street Specialty Lending Inc currently trades 31 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Sixth Street Specialty Lending Inc (TSLX)?
The closing price on Sep 23, 2026 was $18.25. Our model-based fair value is $23.91, about +31% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Sixth Street Specialty Lending Inc right now?
The model range is unusually wide ($14.49 to $42.85). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (62/100) 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.
Where does the earnings growth of Sixth Street Specialty Lending Inc (TSLX) come from?
Earnings per share at Sixth Street Specialty Lending Inc grew +2.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +7.9 %, EBIT margin −6.6 %, tax rate −0.1 %, residual (interest, one-offs) +1.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Sixth Street Specialty Lending Inc
How large is the market capitalisation of Sixth Street Specialty Lending Inc (TSLX)?
The market capitalisation of Sixth Street Specialty Lending Inc is $1.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Sixth Street Specialty Lending Inc (TSLX)?
The price-to-sales ratio of Sixth Street Specialty Lending Inc is 7.51 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Sixth Street Specialty Lending Inc (TSLX)?
Earnings per share at Sixth Street Specialty Lending Inc are $1.15 (price ÷ EPS = P/E 15.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Sixth Street Specialty Lending Inc (TSLX)?
The dividend yield of Sixth Street Specialty Lending Inc is 10.9% (payout 173%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Sixth Street Specialty Lending Inc (TSLX)?
The net margin of Sixth Street Specialty Lending Inc is 47.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Sixth Street Specialty Lending Inc (TSLX)?
The return on equity (ROE) of Sixth Street Specialty Lending Inc is 6.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Sixth Street Specialty Lending Inc (TSLX)?
On an EBIT basis the return on assets of Sixth Street Specialty Lending Inc is 6.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Sixth Street Specialty Lending Inc (TSLX)?
The operating margin of Sixth Street Specialty Lending Inc is 74.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Sixth Street Specialty Lending Inc (TSLX)?
Revenue at Sixth Street Specialty Lending Inc is growing −19.7% versus a year earlier (3y avg +24.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Sixth Street Specialty Lending Inc (TSLX)?
Earnings per share at Sixth Street Specialty Lending Inc are growing −42.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Sixth Street Specialty Lending Inc (TSLX) carry?
The net debt of Sixth Street Specialty Lending Inc is $1.7B (fiscal year 2025, ≈ 9.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 23, 2026