2 models fit Sixth Street Specialty Lending Inc. Common Stock and they agree: 2 of 2 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Bronze40
Valued as a fund or holding company: Net asset value and P/E comparison.
ACCE opinionSixth Street Specialty Lending Inc. Common Stock (TSLX)
Fair value (2 models)
$18.70
ACCE price target
$17.40
Rating
Fairly valued
Horizon
12 months
Fair value published on 18 Oct 2026, 17:04 CEST; previously $18.97 since 10 Oct 2026, 00:00 CEST.
ACCE price target published on 12 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 17:04 CEST.
Price used: $17.09 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and Net asset value.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
8.6% below
+9.4% to fair value
ACCE score
44
out of 100
Analysts
91% buy
11 covering
P/E
18.4x
forward 9.3x
1-year return
-22.7%
Dividend yield
9.67%
Sixth Street Specialty Lending Inc. Common Stock in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Sixth Street Specialty Lending is a business development company that makes senior secured and unitranche loans to middle-market US companies, earning interest income that it distributes to shareholders as dividends. Its edge is scale and underwriting discipline inside the Sixth Street platform, which gives it deal flow and access to lending relationships that smaller BDCs struggle to match. The near-term question is whether the portfolio's credit quality holds while revenue has fallen 14.9% year over year, a drag that partly reflects lower base rates feeding into floating-rate loan income. The stock trades at 10.2 times forward earnings against 18.9 times trailing, which implies the market expects earnings to recover, but a 5.6% return on equity and a score of 44/100 mean the case rests on that recovery rather than on current profitability. It is worth a deeper look only if you have a view on non-accrual trends and whether the dividend is covered by net investment income going forward.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Earnings falling faster than revenue
Revenue fell 14.9% year on year and earnings fell 32.1%, so the spread between top line and bottom line is widening. Net margin is still 21.8%, but the direction matters.
moderate
Leverage above one times equity
Debt to equity is 1.08, so borrowings exceed book equity. For a lender this is normal, but it leaves less cushion if credit losses rise.
moderate
ACCE score drifting lower
The ACCE score fell from 46 to 42 over 90 days. Momentum sub-score is 23 out of 100, the weakest of the four components.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
The stock yields 9.9% in dividends and generated $180M of free cash flow over the last twelve months.
Revenue grew 12.7% a year on average over five years, and the latest quarter beat expected earnings by 4.9%.
The stock trades at 8.6% below the model fair value of $18.70, and analysts' mean target sits 17.6% higher.
Why it could disappoint
Revenue fell 14.9% over the past year as base rates declined, a trend the risk notes flag as medium severity.
Return on equity of 5.6% and return on invested capital of 4.2% are thin for the capital tied up in the business.
Debt stands at 1.08 times equity, and the diluted share count rose 2.9% last year, diluting existing holders.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
PRO
Ask ACCE
Valuation
INVESTOR
Where TSLX's valuation models land
Price
$17.09
Model fair value
$18.70
Model range
$16.33 to $20.67
Fair value $18.70
Price $17.09
The price sits inside the model range.
Model
Fair value
Upside
Net asset value
P/E comparison
Create a free account: 5 full stock pages a month, no card.
See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores